Paddy Power in talks on U.S. merger

Marco Green
May 16, 2018

Paddy Power Betfair plc (LON:PPB) noted today the media speculation, and confirmed that it is in discussions, regarding a potential combination of the Group's U.S. business and FanDuel to create a combined business to target the prospective USA sports betting market.

Citing multiple sources close to the talks, Legal Sports Report said that although details of the mooted agreement are unknown, it is understood the value of the deal is some way below the $1bn (€844.6m) at which FanDuel was once valued.

The move comes just days after the U.S. relaxed its gambling laws, providing an opening for the likes of William Hill and Paddy.

Players choose which contest they want to enter, build fantasy sports teams that do not breach a fantasy salary cap, and engage in head-to-head or multi-player contests. The announcement follows the decision of the US Supreme Court which overturned the Professional and Amateur Sports Protection Act of 1992 and lifted the federal ban imposed on sports betting operations by the afore-mentioned piece of legislation. It is backed by the likes of Kohlberg Kravis Roberts, Google Capital and NBC Sports Ventures. It is a major player in the U.S. fantasy sports market, where players pick teams and compete against others for cash prizes.

GVC Holdings, Britain's largest gambling firm, expects to grow significantly in the United States after the Supreme Court paved the way to legalize sports betting.

In Britain, Paddy Power and other bookmakers are bracing for the impact of imminent state intervention in the sector.

Other reports by Click Lancashire

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