• About Us / Contact
  • Responsible Gambling
This site contains commercial content
SportsHandle
  • US Sports Betting
    • Arizona
    • Arkansas
    • Colorado
    • Connecticut
    • Delaware
    • Illinois
    • Indiana
    • Iowa
    • Kansas
    • Louisiana
    • Maine
    • Maryland
    • Massachusetts
    • Michigan
    • Mississippi
    • New Jersey
    • New Mexico
    • New York
    • Ohio
    • Oregon
    • Pennsylvania
    • Tennessee
    • Virginia
    • West Virginia
    • Wyoming
  • Pending States
    • California
    • Florida
    • Georgia
    • Missouri
    • North Carolina
  • Canada
    • Ontario
    • British Columbia
    • Alberta
  • Sportsbook Apps
    • FanDuel
    • BetMGM
    • Caesars
    • PointsBet
    • BetRivers
  • Tools
    • Sportsbook Bonuses Explained
    • Sports Betting Revenue Tracker
    • Sports Betting Podcasts
    • Partnership Tracker
    • Expected Value
    • Sports Scores And Odds Apps
    • Sports Betting Twitter
  • News
No Result
View All Result
SportsHandle
  • US Sports Betting
    • Arizona
    • Arkansas
    • Colorado
    • Connecticut
    • Delaware
    • Illinois
    • Indiana
    • Iowa
    • Kansas
    • Louisiana
    • Maine
    • Maryland
    • Massachusetts
    • Michigan
    • Mississippi
    • New Jersey
    • New Mexico
    • New York
    • Ohio
    • Oregon
    • Pennsylvania
    • Tennessee
    • Virginia
    • West Virginia
    • Wyoming
  • Pending States
    • California
    • Florida
    • Georgia
    • Missouri
    • North Carolina
  • Canada
    • Ontario
    • British Columbia
    • Alberta
  • Sportsbook Apps
    • FanDuel
    • BetMGM
    • Caesars
    • PointsBet
    • BetRivers
  • Tools
    • Sportsbook Bonuses Explained
    • Sports Betting Revenue Tracker
    • Sports Betting Podcasts
    • Partnership Tracker
    • Expected Value
    • Sports Scores And Odds Apps
    • Sports Betting Twitter
  • News
No Result
View All Result
SportsHandle
No Result
View All Result

Paddy Power Betfair Announces Acquisition of FanDuel

Robert Mann by Robert Mann
May 23, 2018
in Industry
The move is expected to fortify PPB’s US footprint in the emerging US sports wagering marketplace by aligning itself with “a strong brand, large existing customer base and talented team,” the PPB announcement said.
Share on FacebookShare on Twitter

Following rumors and non-denials, Paddy Power Betfair (PPB) now has officially announced it has reached a definitive agreement to combine its Betfair U.S. operations with FanDuel, the number two U.S. daily fantasy sports operator. The news was first reported by Legal Sports Report.

The move is expected to fortify PPB’s U.S. footprint in the emerging U.S. sports wagering marketplace by aligning itself with “a strong brand, large existing customer base and talented team,” the PPB announcement said.

The aligning of the two companies in the U.S. will position them as major players in the emerging US sports betting market, now unfettered by federal regulations that had effectively prohibited nearly all kinds of sports betting outside of Nevada. The U.S. Supreme Court struck down the law banning single-game sports wagering outside of Nevada last Monday.

Paddy Power Betfair Announces Acquisition of FanDuel, Expanding US Footprint in a Rapidly Moving U.S. Sports Betting Marketplace in Wake of Supreme Court Striking of PASPA

Today we’ve teamed up with @FanDuel for an exciting US sports betting partnership: creates the #1 US online operator with 8m registered customers across 45 states. Full announcement here: https://t.co/uEepsAQexG pic.twitter.com/mmSveMl4mB

— Paddy Power Betfair (@PPBetfair) May 23, 2018

PPB says, “The scale of the combined business also means it is well positioned in discussions with providers of market access for sports betting.”

FanDuel claims over 40 percent of Daily Fantasy Sports (DFS) market with what is says are 7 million registered customers across 40 states producing $124 million in revenue in 2017. 

PPB says the agreement calls for its contribution of existing U.S. assets along with $158 million of cash. This cash contribution will be used to pay down existing FanDuel debt (net debt of $76 million on March 31, 2018) and fund working capital of the combined business. PPB’s U.S. assets include an online casino operation in New Jersey, a horse racing betting exchange platform, the third-place DFS site “Draft” and, most significantly TVG, the horse-racing television network and major Advance Deposit Wagering (ADW) platform. 

Some additional words from PPB and CEOs Kip Levin and Peter Jackson:

Delighted to announce our transaction with @FanDuel – hugely excited about the deal and the opportunity it gives us to tackle the US sports betting market

— Peter Jackson (@jpeterjackson) May 23, 2018

Incredibly excited and proud to welcome the #FanDuel team to our US business and @TVG as we prepare for the pending legalization of #SportsBetting across the US!

— Kip Levin (@kip) May 23, 2018

.@FanDuel is an iconic brand for US sports fans and today’s transaction strengthens the Group’s opportunities within the prospective US sports betting market: pic.twitter.com/RLPGpmgIbW

— Paddy Power Betfair (@PPBetfair) May 23, 2018

When the deal is completed, PPB says it will own 61 percent of the combined business, with existing FanDuel investors owning 39 percent.

All material FanDuel investors are rolling their investment into the combined business with an agreed mechanism that could take PPB’s ownership of the business to 80 percent after three years and 100 percent after five years. That mechanism consists of call and put options at the prevailing market valuations, according to PPB.

PPB will have operational control of the business, which will become a fully consolidated subsidiary, and will have the right to appoint the CEO and a majority of the Board of Directors. Existing FanDuel investors will continue to have Board representation.

Pending various regulatory approvals, the deal is expected to close by September.

Elsewhere, DFS competitor and at one time potential merger partner (until the Federal Trade Commission rejected it), DraftKings, is moving aggressively to enter the sportsbook/operator arena, announcing its new sportsbook vertical on Monday. Advertising in New Jersey has already begun, as well.

first look: DraftKings wasted no time after SCOTUS ruling in getting billboards up in New Jersey advertising forthcoming sportsbook.

billboards on highway and at train stations say: “WHY SHOULD VEGAS HAVE ALL THE FUN?” and “LEGAL SPORTS BETTING IN JERSEY? YOU BET” pic.twitter.com/vHmxdwWgPJ

— Daniel Roberts (@readDanwrite) May 22, 2018

One hurdle in the U.S. market for PPB/FanDuel, as indicated above, will be finding partners for which to handle wagers, or obtaining sportsbook licenses itself in the quickly expanding but still uncertain US market.  Regulations in states may differ widely. For example, Mississippi will probably allow on-premises wagering only, and New Jersey is looking to allow online wagering off the bat.

[Also See: In A Regulated U.S. Sports Betting Market, Which Operator Will Be King?]


Share5TweetShare
Robert Mann

Robert Mann

Sports Handle contributor Robert Mann has a Northwestern journalism degree and is a former reporter for the Chicago Tribune and National Enquirer. He has worked in news management for CNN and several TV stations and is a 31-year resident of Las Vegas.

Related Posts

Arizona January 2023 revenue report
Analysis

Arizona Puts Bow On Record-Setting January For U.S. Sports Wagering

March 27, 2023
whats on tap
Industry

What’s On Tap: Elite Eight, WBC Finals, And Texas Sports Betting Hearing

March 20, 2023
Load More

Top Stories

taylor mathis

Taylor Mathis Got Sacrificed At The Altar Of Responsible Gambling

March 20, 2023
fanduel baseball wall

Premade Same Game Parlays Are Sucker Bets

March 13, 2023
maginfier-over-small-print

Read The Fine Print: A Proposed Federal Rule Could Change Everything For Indian Gaming

March 6, 2023
roman reigns wwe

Colorado Denies Report Stating That It’s Considering WWE Wagering

March 8, 2023

State Sports Betting Guides

Ohio (U.S. state) flag waving against clear blue sky, close up, isolated with clipping path mask alpha channel transparency, perfect for film, news, composition

Ohio Sports Betting – Where To Play, Bonus Offers And Promo Codes

by Brian Pempus
March 31, 2023

Downtown Detroit at twilight (Shutterstock)

Michigan Sports Betting – Where To Play, Online Sportsbooks, And FAQ

by Brett Smiley
March 27, 2023

VA captial

Virginia Sports Betting – Where To Play, Online Sportsbooks And Bonus Offers

by Brett Smiley
January 17, 2023

nj flag

New Jersey Sports Betting — Where To Play, Online Sportsbooks, And FAQ

by Brett Smiley
March 22, 2023

pa online sportsbooks

Pennsylvania Sports Betting – Where To Play, Online Sportsbooks And Bonuses

by Brett Smiley
October 6, 2022

Canada Sports Betting Guides

Canada Sports Betting – Best Sportsbook Apps & Bonus Offers

British Columbia Sports Betting – Legal Update, Available Sportsbooks, and FAQ

Ontario Sports Betting – Legal Status And Where To Play

SportsHandle

  • Analysis
  • Casino
  • Features
  • Horse Racing
  • Industry
  • Legal
  • Legislation
  • Opinion
  • Podcasts
  • Poker
  • Politics
  • Promotions
  • Regulation
  • Sports
  • Uncategorized

Better Collective

This website is owned and operated by Better Collective USA. Trademarks and copyrights referenced on this website are and shall remain the exclusive property of their respective owners and/or licensors. Please be sure to visit the operator’s website(s) to review their terms & conditions. We advise you to read these carefully as they contain important information. Copyright © 2023 USBets.com | Better Collective USA
21 Play Responsibly
Gamble Aware West Virginia
Gambling Problem? Call 1-800-Gambler.
GameSense

Search Sports Handle

No Result
View All Result
  • About Us / Contact
  • Responsible Gambling

No Result
View All Result
  • US Sports Betting
    • Arizona
    • Arkansas
    • Colorado
    • Connecticut
    • Delaware
    • Illinois
    • Indiana
    • Iowa
    • Kansas
    • Louisiana
    • Maine
    • Maryland
    • Massachusetts
    • Michigan
    • Mississippi
    • New Jersey
    • New Mexico
    • New York
    • Ohio
    • Oregon
    • Pennsylvania
    • Tennessee
    • Virginia
    • West Virginia
    • Wyoming
  • Pending States
    • California
    • Florida
    • Georgia
    • Missouri
    • North Carolina
  • Canada
    • Ontario
    • British Columbia
    • Alberta
  • Sportsbook Apps
    • FanDuel
    • BetMGM
    • Caesars
    • PointsBet
    • BetRivers
  • Tools
    • Sportsbook Bonuses Explained
    • Sports Betting Revenue Tracker
    • Sports Betting Podcasts
    • Partnership Tracker
    • Expected Value
    • Sports Scores And Odds Apps
    • Sports Betting Twitter
  • News