UK-based bookmaker business Paddy Power Betfair has announced its interest in expanding its own US operations through an arrangement with FandDuel, the US-based fantasy sports wagering company.
The announcement came the day after the announcement of the removal of PASPA which allow individual states in the US to determine the legality of sports betting. This decision has made many of America’s gambling sector business potentially more valuable.
Paddy Power Betfair claim that a potential deal would see a combination of the groups US based businesses with FanDuel. But the statement does not explain what that deal would entail in terms of issues such as cost or how the operations would interact with one another.
In particular sites such as FanDuel and other daily fantasy sports focused businesses have become far more appealing to foreign sports betting company’s who are looking to establish themselves in the US. It’s estimated that currently 30 million Americans use fantasy sports sites.
Paddy Power Betfair has already invested $48m in there US operations including the acquisition of another fantasy sports site, Draft. The company has also purchased a horse racing TV channel, TVG.
Revenue from the company’s US operations increased 23% year-on-year according to Paddy Power Betfair’s latest Q1 report.
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.