Paddy Power in talks to merge with Fan Duel

16 May 2018

Gambling company Paddy Power Betfair has said it remains in talks over a merger in the US with fantasy sports site Fan Duel.

Talks centre around integrating its US operation with Fan Duel to develop an organization to "to target the potential US sports wagering market".

It comes as the American Supreme Court reversed 1992 legislation that prohibited sports wagering in a lot of US states.

Fan Duel permits sports fans to gamble on fantasy sports leagues and contests.

Merger deserted

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 fantasy sports players in The United States and Canada.

Players pick which contest they wish to go into, develop dream sports groups that do not breach a dream wage cap, and take part in head-to-head or multi-player contests.

The business, which was founded in 2009, is based in New York and has about 400 employees.

A proposal to combine with competitors Draft Kings was deserted last year, after being blocked by the Federal Trade Commission on the grounds that the combined firm would control a 90% market share.

Since the Supreme Court ruling on 14 May Draft Kings has signified its intent to go into the sports gambling market.

Horseracing channel

The Dublin-based betting company currently has a United States department, that includes the 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 casino and a horse racing wagering exchange.

A merger with Fan Duel would give it access to millions of prospective sports wagering fans.

Neil Wilson, primary analyst at markets.com, stated wagering firms were already jockeying for position after the Supreme Court ruling.

"Fan Duel competing Draft Kings has currently stated it will enter the sports wagering market and there is some sense that regional incumbents may have the ability to get considerable market share before UK and European operators get an opportunity to mobilise their forces," he said.