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Paddy Power discussing purchase of FanDuel
Posted on Wednesday, 16 May 2018 11:05
Irish betting group Paddy Power confirmed recent media speculation that the company is in negotiations with US-based fantasy sports company FanDuel as part of plans to expand in the market.
The news comes after the American Supreme Court (ASC) made a landmark ruling to overturn a 1992 legislation that banned sports betting in most of the country’s states.
Paddy Power noted discussions are ongoing and there can be no guarantee of a deal going ahead and a further announcement will be made when appropriate.
The decision by the ASC clears the way for individual states to legalise the practice if they want to.
Paddy Power made its debut in the US fantasy sports market with its USD 48.00 million acquisition of Draft last year.
No details of the size of the deal for FanDuel have been disclosed as of yet, though the original article by Legal Sports Report cited sources as saying a value for the company is likely to be below the USD 1.00 billion it was valued at in 2015.
The target allows sports fans to gamble on fantasy sports leagues and contests on games created around the National Football League, the National Basketball Association and the National Hockey League.
According to a report by the BBC, there are an estimated 30.00 million adult fantasy sports player in North America.
FanDuel was linked to a merger with rival Draft Kings last year; however, plans were abandoned after the deal was blocked by the Federal Trade Commission as the combined firm would have controlled 90.0 per cent of the market share.
Paddy Power is looking for growth after posting declining sales and underlying profits in recent quarters.
According to Zephyr, the M&A database published by Bureau van Dijk, there have been 37 deals targeting non-casino gambling companies announced worldwide since the start of 2018.
The largest such transaction involves the Stars Group making a USD 4.70 billion offer to acquire UK-based Sky Betting & Gaming.
Cirsa Gaming of Spain was purchased by the Blackstone Group for EUR 2.00 billion, while Italy’s Snaitech, William Hill Australia and even Paddy Power Betfair were also targeted in deals.
© Zephus Ltd