Paddy Power Betfair, the UK-bases sportsbook, has recently confirmed that it is currently looking into purchasing FanDuel, the daily fantasy sports operator in the United States. The move is in response to the Supreme Court’s decision to overturn the federal ban on sports betting.
Paddy Power Looks to Enter US Sports Betting Market
With sports betting no longer banned on a federal level, individual states will now decide whether they want to allow it. As many as 25 states could legalize sports betting within the next few years. This will create a massive, multi-billion-dollar market in America, something which many companies are excited to be a part of.
Paddy Power is one of them, who confirmed rumors that they were considering purchasing FanDuel. However, Paddy Power was quick to mention that there is no guarantee a deal would be reached, nor when this might happen. Having said that, some have reported that the companies are close to a deal. Sources close to Paddy Power have also reported that the firm hasn’t just been talking to FanDuel. The UK-based firm has also been talking to several American gambling groups, looking for potential partnerships and deals.
FanDuel Gives Paddy Power US-Recognition
Paddy Power is not completely unknown to American customers, as it operates an online casino in New Jersey. It also bought DRAFT, in order to get into the DFS scene in the USA. However, buying FanDuel would be a very smart move. It would give the UK firm access to its 6 million users, as well as brand recognition. It’s unclear how the bookmaker would proceed with regards to DFS, now that sports betting will grow.
Some are wondering how this deal could affect DraftKings, the other big player in the DFS market. Both DraftKings and FanDuels expressed interest in sports betting, should the Supreme Court announce a favourable decision. If the deal goes through between Paddy Power and FanDuel, DraftKings will be let at a significant disadvantage, as it has never actually processed a proper sports bet before.