Paddy Power Betfair in talks to buy Fanduel

Paddy Power Betfair in talks to buy Fanduel

Paddy Power Betfair confirms it is in talks to buy FanDuel after restriction lifted on sports betting in the US

A United States ban on sports gambling has recently been struck down, and the acquisition would give the British gambling giant a doorway into the American market.

Paddy Power Betfair has said it is in discussions regarding a potential combination of its USA business and fantasy sports company Fanduel to target the prospective U.S. sports betting market.

The Irish bookmaker is targeting America after a Supreme Court ruling on Monday paved the way for states to legalise sports gambling. Business Insider also spoke to a source with knowledge of the deal.

Should the acquisition take place, Paddy Power Betfair would gain access to a database of millions of DFS players, thus expanding its network of customers from both the TVG and Draft DFS platforms.

Legal Sports Report, meanwhile, reported that the two companies are "close" to a deal, but that it's not clear when it might be finalized.

FanDuel allows players to pick fantasy sports teams and play against each other for cash prizes. (Paddy Power Betfair already has a horseracing TV network called TVG in the USA, and some smaller operations.) As of 2016, FanDuel was said to be worth over $1 billion. The announcement follows the decision of the US Supreme Court which overturned the Professional and Amateur Sports Protection Act of 1992 and lifted the federal ban imposed on sports betting operations by the afore-mentioned piece of legislation.

FanDuel was part of merger discussion a year ago with rival DraftKings but the plan was scrapped in July after a legal challenge by the US Federal Trade Commission.

Paddy Power Betfair (LON:PPB)'s stock had its "reduce" rating restated by analysts at Peel Hunt in a report released on Monday, April 23rd.

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