Paddy Power Betfair Bolsters U.S. Ambitions After Acquiring DFS Operator Draft
It is hard to believe that not so long ago the daily fantasy sports industry dominated by DraftKings and FanDuel were on their knees. It is no exaggeration to say that many believed that the legal onslaught by U.S. Attorney General Eric Schneiderman in New York was potentially the final nail in this once undisputed industry.
After paying off a hefty settlement in New York the DFS industry has stabilized and even seems to be an attractive investment for those looking to expand their customer base in the UK. Despite the pending merger between DraftKings and FanDuel who make up to 95% of the market, Irish bookmaker Paddy Power Betfair has made a bold move as they have acquired U.S. based DFS company Draft for $19 million upfront and depending on their performance will pay an additional $29 million over the next four years.
CEO of Paddy Power Betfair Breon Corcoran commented on the bold acquisition,” Draft has a differentiated product and we believe the business, with the support of our marketing and technology expertise, can take share in the fast-growing daily fantasy sports market.”
In terms of the agreement co-chief executives of Draft Jeremy Levine and Jordan Fliegel will continue to run operations and will also have access to Paddy Power Betfairs’ marketing and technological resources.
In an interview with RotoGrinders Levine said they will continue to do what they have done up till now but with the mighty force of Paddy Power Betfair behind them. When asked how they plan on competing with FanDuel and DraftKings who make up 95% of the market share, Levine said they will concentrate on their own game by virtue of the snake draft which is very different from that of DraftKings and FanDuel.