{"id":7110,"date":"2018-05-25T19:43:08","date_gmt":"2018-05-25T19:43:08","guid":{"rendered":"https:\/\/www.pokerscout.com\/?p=7110"},"modified":"2018-05-28T05:09:16","modified_gmt":"2018-05-28T05:09:16","slug":"paddy-power-betfair-and-fanduel-betting-big-on-sports-betting","status":"publish","type":"post","link":"https:\/\/www.pokerscout.com\/paddy-power-betfair-and-fanduel-betting-big-on-sports-betting\/","title":{"rendered":"Paddy Power Betfair and FanDuel Betting Big On Sports Betting"},"content":{"rendered":"<div class=\"us_posts_top\">\n<div class=\"us_wrapper tac us_skin_default\">\n<div class=\"us_facebook us_no_count us_button\">\n<p>&nbsp;<\/p>\n<div class=\"us_share\"><\/div>\n<p>&nbsp;<\/p>\n<\/div>\n<div class=\"us_twitter us_no_count us_button\">\n<p>&nbsp;<\/p>\n<div class=\"us_share\"><\/div>\n<p>&nbsp;<\/p>\n<\/div>\n<div class=\"us_googleplus us_no_count us_button\">\n<p>&nbsp;<\/p>\n<div class=\"us_share\"><\/div>\n<p>&nbsp;<\/p>\n<\/div>\n<div class=\"us_linkedin us_no_count us_button\">\n<p>&nbsp;<\/p>\n<div class=\"us_share\"><\/div>\n<p>&nbsp;<\/p>\n<\/div>\n<\/div>\n<\/div>\n<p>The fantasy sports company, <strong>FanDuel<\/strong> is expanding its reach into the U.S. sports betting market. <strong>Paddy Power Betfair<\/strong>, the European gaming company, struck a deal to buy a controlling stake in the DFS company.<\/p>\n<p>The <strong>Supreme Court<\/strong>\u2018s decision last week opened the door for legal single-game sports betting in the U.S. On the heels of that the decision, the two companies announced they were merging. It is obvious they are preparing to capitalize on the infancy sports betting market from the onset.<\/p>\n<p>\u201cFanduel and Betfair \u2026 are prepared to lead the charge into the US sports betting market,\u201d Fanduel CEO <strong>Matt King<\/strong> <a href=\"https:\/\/www.paddypowerbetfair.com\/~\/media\/Files\/P\/Paddy-Power-Betfair\/documents\/view-news.pdf\">said<\/a> in a statement.<\/p>\n<div class=\"redheader-cta tb_edit_table\">\n<div class=\"pusa-table cta\">\n<div class=\"sr-header\">\n<p>Play At Betfair NJ Now With Free Signup Bonus<\/p>\n<\/div>\n<ul class=\"pusa-list\">\n<li>\n<ul class=\"pusa-item\">\n<li class=\"pusa-logo\"><img decoding=\"async\" class=\"thirstylinkimg\" title=\"Betfair\" src=\"https:\/\/www.pokerscout.com\/wp-content\/uploads\/2018\/05\/betfair-250-2.png\" alt=\"Betfair\" \/>Visit Betfair<\/li>\n<li class=\"pusa-bonus\">$30 FREE100% UP TO $2500<\/li>\n<li class=\"pusa-details\">Betfair ReviewOverall Grade A\n<ul class=\"pusa-item-checklist-alt\">\n<li><i class=\"fa fa-check\"><\/i>Bonus A+<\/li>\n<li><i class=\"fa fa-check\"><\/i>Games A+<\/li>\n<li><i class=\"fa fa-check\"><\/i>Support A-<\/li>\n<li><i class=\"fa fa-check\"><\/i>Banking B+<\/li>\n<\/ul>\n<\/li>\n<li class=\"pusa-button\">PLAY NOW<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<h2>The Paddy Power Betfair and FanDuel merger<\/h2>\n<p>The merger is limited to PaddyPower\u2019s <strong>U.S. operations<\/strong>, which <strong>reported $141 million<\/strong> in revenue last year. FanDuel made<strong> $124 million<\/strong>. Both were unprofitable and are banking that sports betting will change that.<\/p>\n<p>FanDuel ha<strong>s 7 million registered users<\/strong> accounting for <strong>40 percent<\/strong> of the fantasy-sports activity in the U.S.<\/p>\n<p>Once the deal is approved, Paddy Power Betfair will own <strong>61 percent<\/strong> of the newly combined business. It will also be the operational decision maker.<\/p>\n<p>After three years, Paddy Power Betfair has the option to acquire<strong> 80 percent<\/strong> of the company. In five years, it has the opportunity to <strong>purchase the remaining 20 percent<\/strong> of the company outright.<\/p>\n<p>FanDuel currently has <strong>$76 million<\/strong> in existing debt. As part of the agreement, Betfair US will <strong>contribute $150 million in cash<\/strong> to pay down the debt and contribute its existing U.S. assets.<\/p>\n<p>Both companies expect to finalize the deal in Q3.<\/p>\n<h2>Why FanDuel and not Draft Kings?<\/h2>\n<p>There was a question from the conference call announcing the merger as to why Paddy Power Betfair chose FanDuel.<\/p>\n<p>\u201cI\u2019m just wondering why it is FanDuel that you have chosen to buy, rather than a business that looks more successful in <strong>DraftKings<\/strong> \u2014 or at least bigger.\u201d<\/p>\n<p><strong>Peter Jackson<\/strong>, CEO of Paddy Power Betfair alluded that the sale is more than buying a <strong>customer base<\/strong>. The company is looking to build a business that brings the successes of their European operation to the U.S:<\/p>\n<blockquote><p>\u201cWe think we\u2019ve got a very good cultural fit with the business. If you go far enough back, Nigel \u2014 who actually founded FanDuel \u2014 was one of the early people who worked at Betfair. So if you go back far enough, we\u2019re all related.\u201d<\/p><\/blockquote>\n<p>FanDuel\u2019s player database and Paddy Power Betfair\u2019s investment will not only position FanDuel in the sports betting market, but it will also help to <strong>grow its DFS product<\/strong>.<\/p>\n<p>It\u2019s unknown what<strong> sports betting with FanDuel<\/strong> will look like. In an email to users, King wrote:<\/p>\n<blockquote><p>\u201cWe\u2019re currently working on a sports betting product which we expect to be available by the 2018 NFL season. We can\u2019t wait for you to see what we have in store!\u201d<\/p><\/blockquote>\n<p>The merger will give FanDuel <strong>much-needed capital<\/strong> and the expertise to catch up to DraftKings, which until now was leading the charge.<\/p>\n<h2>Looking ahead to the legalized sports market<\/h2>\n<p>\u201cWe are excited to add FanDuel to the Group\u2019s portfolio of leading sports brands,\u201d Jackson said. \u201cThis combination creates the industry\u2019s largest online business in the US, with a large sports-focused customer base and an extensive nationwide footprint.\u201d<\/p>\n<p>The estimates for the potential size of the legal sports betting market in the U.S. are all over the place. Some have come in as high as $13 billion.<\/p>\n<p><strong>GamblingCompliance<\/strong>, an independent gaming intelligence company believes five states will legalize sports betting in 2018. It estimates sports betting revenue of <strong>$1 billion<\/strong> this year. In five years, the estimate falls between<strong> $2 billion and $6 billion<\/strong> per year.<\/p>\n<p>States that are on track to implement sports betting this year are:<\/p>\n<ul>\n<li><strong>New Jersey<\/strong><\/li>\n<li><strong>Delaware<\/strong><\/li>\n<li><strong>Mississippi<\/strong><\/li>\n<li><strong>West Virginia<\/strong><\/li>\n<li><strong>Pennsylvania<\/strong><\/li>\n<\/ul>\n<p>Being<strong> first to market<\/strong> as states put sports betting regulations in play will be crucial. With the assets, capital and knowledge of Paddy Power Betfair behind them, FanDuel will be ready to take advantage and secure more than its fair share.<\/p>\n<div class=\"us_posts_bottom\">\n<div class=\"us_wrapper tac us_skin_default\">\n<div class=\"us_facebook us_no_count us_button\">\n<p>&nbsp;<\/p>\n<div class=\"us_share\"><\/div>\n<p>&nbsp;<\/p>\n<\/div>\n<div class=\"us_twitter us_no_count us_button\">\n<p>&nbsp;<\/p>\n<div class=\"us_share\"><\/div>\n<p>&nbsp;<\/p>\n<\/div>\n<div class=\"us_googleplus us_no_count us_button\">\n<p>&nbsp;<\/p>\n<div class=\"us_share\"><\/div>\n<p>&nbsp;<\/p>\n<\/div>\n<div class=\"us_linkedin us_no_count us_button\">\n<p>&nbsp;<\/p>\n<div class=\"us_share\"><\/div>\n<p>&nbsp;<\/p>\n<\/div>\n<\/div>\n<\/div>\n<p>The post Paddy Power Betfair and FanDuel Betting Big On Sports Betting appeared first on Play USA.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; The fantasy sports company, FanDuel is expanding its reach into the U.S.&hellip; <a class=\"more-link\" href=\"https:\/\/www.pokerscout.com\/paddy-power-betfair-and-fanduel-betting-big-on-sports-betting\/\">Continue reading <span class=\"screen-reader-text\">Paddy Power Betfair and FanDuel Betting Big On Sports Betting<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":7113,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"link","meta":{"_acf_changed":false,"inline_featured_image":false,"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[374,6],"tags":[],"class_list":{"0":"post-7110","1":"post","2":"type-post","3":"status-publish","4":"format-link","5":"has-post-thumbnail","7":"category-industry","8":"category-news-category","9":"post_format-post-format-link","10":"entry"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.8.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Paddy Power Betfair and FanDuel Betting Big On Sports Betting -<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.pokerscout.com\/paddy-power-betfair-and-fanduel-betting-big-on-sports-betting\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Paddy Power Betfair and FanDuel Betting Big On Sports Betting -\" \/>\n<meta property=\"og:description\" content=\"&nbsp; 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