Economy

Paddy Power in talks to tie-up with FanDuel

Paddy Power in talks to tie-up with FanDuel

FanDuel had previously spoken about its plans to launch a sports betting service should the Supreme Court overturn the federal 1992 Professional and Amateur Sports Protection Act (PASPA), which blocked most USA states from offering regulated sports betting.

United Kingdom and Ireland-based bookmaker Paddy Power Betfair is in discussions regarding a potential deal with a New York-based fantasy sports company FanDuel, according to latest reports. Congress can pass a federal law, but states are free to pass their own regulations.

If a deal goes ahead, it is likely to be worth considerably more than the $48m (£35.6m) that Paddy Power paid for FanDuel's smaller rival Draft a year ago.

Analysts have valued FanDeal at more than $1bn. If the FanDuel deal goes through, it would not be the company's first move into the USA market. It already has a large presence in the U.S. and entered the fantasy sports...

The company, which owns a USA horse racing channel and betting network, paid $48m for FanDeal's smaller rival DRAFT.

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The announcement makes it clear that for now the company has simply expressed its interest in the deal and no agreement has yet to be reached between Paddy Power Betfair and FanDuel.

On Monday, following the Supreme Court decision, FanDuel said: "The Supreme Court's decision, which paves the way for states to legalise sports betting, creates an enormous opportunity for FanDuel as our platform, brand and customer base provide a unique and compelling foundation to meaningfully participate".

"Given the regulatory and taxation headwinds that European operators are facing in their home markets over the next few years, [the repeal of PASPA] is a very attractive long-term positive for the companies under our coverage and as such is supportive of their long-term growth prospects", they said.

Rumors about the potential deal between Paddy Power Betfair and FanDuel come on the heels of the Supreme Court decision to overturn PASPA as unconstitutional.