In the wake of the Supreme Court of the United States ruling to repeal a 1992 federal ban on sports betting. Which leaves the legality of that practice for states to decide. Betting giant Paddy Power Betfair is trying to get into the U.S. market by purchasing FanDuel. FanDuel is a leading American daily fantasy sports provider.
Even though the Supreme Court’s ruling came last week. There is speculation that both companies entered negotiations before the court made its ruling.
With William Hill considered the best positioned bookmaker for the opening of the US sports wagering market. Paddy Power Betfair is hoping to improve its standing with what would be a very strategically sound acquisition.
After reports of the negotiations were made public, Paddy Power Betfair issued a statement to address the rumors. What does this mean for you?
“Paddy Power Betfair plc (“the Group”) notes the media speculation. Also, confirms it is in discussions regarding a potential combination of the Group’s US business and FanDuel to create a combined business to target the prospective US sports betting market. Discussions are ongoing and there is no certainty as to whether agreement will be reached, or as to the terms or timing of any transaction. A further announcement will be made as appropriate.”
Paddy Power was valued at $1 billion two years ago, before merging with Betfair. Now, the company is valued at $8.8 billion, and FanDuel is said to be worth $1 billion.
When the U.S. market opens, the opportunities available to bookmakers will only increase. According to reports, the U.S gambling market could be worth $10 billion in net revenues to gambling operators, a figure that excludes money given back to bettors in prizes.
In conclusion, this is far from over. Paddy Power Betfair already has a U.S. division. This includes a horseracing television channel. Also, an online betting network. The acquisition of FanDuel will help solidify the company’s position in the U.S.