Paddy Power in speak to merge with Fan Duel
16 May 2018
Gambling company Paddy Power Betfair has said it is in talks over a merger in the US with fantasy sports website Fan Duel.
Talks centre around integrating its US operation with Fan Duel to create a company to "to target the prospective US sports betting market".
It comes as the American Supreme Court overturned 1992 legislation that prohibited sports betting in the majority of US states.
Fan Duel enables sports fans to gamble on dream sports leagues and contests.
Merger abandoned
It offers dream sport video gaming around NFL American Football, MLB baseball, NBA basketball and NHL ice hockey. There are approximated to be around 30 million adult dream sports gamers in North America.
Players choose which contest they want to get in, develop dream sports teams that do not breach a dream income cap, and engage in head-to-head or multi-player contests.
The company, which was established in 2009, is based in New York and has about 400 employees.
A proposition to merge with rivals Draft Kings was abandoned in 2015, after being blocked by the Federal Trade Commission on the premises that the combined firm would manage a 90% market share.
Since the Supreme Court ruling on 14 May Draft Kings has actually signified its objective to go into the sports gambling market.
Horseracing channel
The Dublin-based gaming firm already has an US division, that includes the yohaig code TVG Network, a horseracing TV channel and online wagering network which is active in 35 states.
And in the state of New Jersey, the company has an online gambling establishment and a horse racing betting exchange.
A merger with Fan Duel would bet9ja's welcome offer it access to millions of possible sports wagering fans.
Neil Wilson, chief analyst at markets.com, said wagering firms were currently jockeying for position after the Supreme Court ruling.
"Fan Duel competing Draft Kings has already stated it will go into the sports betting market and there is some sense that regional incumbents may be able to get considerable market share before UK and European operators get an opportunity to mobilise their forces," he said.
