As we step into the Brave New World of the newly legalised US sports betting market we are likely to see a series of mergers and acquisitions as companies vie for position.
Irish bookmaking giant Paddy Power Betfair Plc has acquired the privately held FanDuel website in a deal that now values the companiesí combined operations at $1 billion.
Fantasy sports site FanDuel was founded in 2009 and boasts over 7 million users betting on the NFL, MLB, NHL, WNBA, EPL and golf. The companyís existing users are said to comprise over 40% of the daily fantasy sports market in the US.
Paddy Power, traded on the London Stock Exchange with a market capitalization of $5.9 billion and some 7,640 employees, will now own 61% of FanDuel after contributing $158 million in cash and its US assets to the deal. The agreement includes an option to increase its ownership stake to 80% in three years and 100% in five years according to Bloomberg.
The transaction combines FanDuelís world-class technology, well-recognized brand, and large, highly engaged user base with Betfair USís existing TVG horseracing betting network and media business along with its online casino business in New Jersey.
The acquisition will bring Paddy Power and FanDuelís combined US revenues to $265 million, making it the single largest sports betting company active today, ahead of DraftKings and TwinSpires.