Paddy Power Betfair has completed its US$465m deal to buy daily fantasy sports operator FanDuel, the company has announced.
The deal sees a new company called FanDuel Group established, operating a portfolio of brands including FanDuel, TVG, Betfair Casino and DRAFT. Paddy Power Betfair now owns 61 per cent of FanDuel Group, with existing FanDuel investors owning 39 per cent.
The deal has not been without its controversy, with only preference shareholders in FanDuel – a Scottish start-up, founded in 2009 – making a return on the sale, which was announced before the US market opened up with the Supreme Court striking down the PASPA ruling that had limited sports betting.
Paddy Power Betfair believes the deal will strengthen the opportunity to target the opened-up US market, with FanDuel boasting a 40 per cent share of the domestic daily fantasy sports market and holding seven million registered customers across 40 states. In 2017, FanDuel generated revenues of $124m.
“This combination creates the industry's largest online business in the US, with a large sports-focused customer base and an extensive nationwide footprint,” Peter Jackson, CEO of Paddy Power Betfair, said following the announcement of the agreement back in May.
“The Group has leading sports betting operating capabilities globally and strong operations on the ground in the US. Together with our substantial financial firepower, we believe we are now well placed to target the prospective US sports betting opportunity."