Paddy Power Betfair Reportedly Looking At FanDuel Acquisition As Gateway To US Sports Betting Market
We recently reported on DFS operator FanDuel announcing that they will be interested in pursuing an entry into the U.S. sports betting market. CEO Matt King announced this prior to the historic US Supreme Court decision that has now opened the flood gates for legal sports betting in the U.S.
A report in LSR is claiming that Paddy Power Betfair is now close to acquiring the DFS giant. The timing of this news is no doubt due to the PASPA decision and certainly puts established DFS operators like FanDuel and DraftKings in a position where they will be courted by major gaming companies looking to cash in on a legal sports betting industry that is worth upwards of $150 billion.
The details of the possible acquisition are not known and will probably only surface after the deal is sealed. It will be interesting to see the valuation of FanDuel which of course has been reduced drastically in the last few years due to the legal problems and restrictions the DFS sector has undergone. However the fact that legal sports betting in happening has given FanDuel a new lease of life as their database of millions of loyal users is set to be more valuable than ever.
Major gaming consortiums like Paddy Power Betfair will be amongst the first to want to establish themselves in the US sports betting market as they are already operating in New Jersey via their Betfair Casino. The players that already have a presence in the US are set to have an advantage over newcomers in the legal sports betting market.
In addition the FanDuel brand will open many doors for Paddy Power Betfair and will attract players looking for a familiar face when placing their bets on sports betting.