Paddy Power Betfair Is Getting Ready to Acquire FanDuel
This decision effectively remove the federal ban on sports betting, which had been in force for more than two and a half decades, and more importantly, it has marked the beginning of a whole new era for the gambling industry in the States.
A Big Deal Is on the Horizon
Things have already started to move forward, with Paddy Power Betfair announcing its plans for the coming period.
According to the statement made by the renowned bookmaker, it is getting ready to purchase FanDuel, the US fantasy sports giant with more than 6 million registered users, who recently expressed the desire to get more involved in the traditional sports betting if the ban gets lifted.
The move itself is not a surprising one since Paddy Power Betfair has been preparing for it for some time now. In March last year, the Dublin-headquartered company purchased one of FanDuel’s market rivals, Draft, in a transaction worth $48 million. In the following months, Paddy Power Betfair spent a significant amount of money for marketing, proving the acquisition was a part of a bigger plan.
With the acquisition of FanDuel, the company is fully prepared to enter the US sports betting market in an impressive way. As we’ve already mentioned, with a customer base exceeding 6 million and with many of whom are ready to switch to sports betting once the legal conditions are fulfilled. Now we only need to wait for individual states to pass their respective laws.
The Power of the Brand
Both Paddy Power and Betfair – which merged back in 2006 to create a joint business – are well-established names in the United Kingdom and Europe, but they are not as nearly known across the Atlantic.
That’s why FanDuel is important: it’s an instantly recognizable brand in the States, with a large number of members, which would help Paddy Power Betfair kick-off in the US market in style. In addition to the value of FanDuel as a brand, its database could prove crucial in attracting new bettors from all over the country.
FanDuel will also benefit from this deal, gaining new knowledge and experience which would be an invaluable asset as the brand expands its operations into the sports betting market.
According to a report by LegalWeek, Freshfields’ Senior Partner Oliver Lazenby will lead Paddy Power Betfair’s legal advisory on FanDuel merger, while Blank Rome from Philadelphia will be the company’s legal advisory in the United States.
At this moment, there is no detailed information about the plans Paddy Power Betfair has. The deal will take place soon, and there’s no doubt we’ll have more info in the coming period. One thing is certain: we are on a verge of a new era when sports betting in the US is in question.
- Forbes: https://www.forbes.com/sites/darrenheitner/2017/05/10/paddy-power-betfair-pays-48-million-for-daily-fantasy-sports-co/#878895820f7a
- Wikipedia: https://en.wikipedia.org/wiki/Paddy_Power_Betfair
- SBC News: https://www.sbcnews.co.uk/europe/2018/05/18/paddy-power-betfair-appoints-legal-leads-fanduel-buyout/
- Legal Week: http://www.legalweek.com/2018/05/17/freshfields-advises-paddy-power-betfair-on-fanduel-merger-talks-after-us-sports-betting-ruling/?slreturn=20180420004045