Paddy Power Betfair Confirms FanDuel Merger Rumours

It has been rumoured for some time that merger negotiations have been occurring between Paddy Power Betfair and daily fantasy sports operator FanDuel, the former has now confirmed that discussions are taking place.

Recently, the federal ban on sports betting in the USA was lifted giving an opportunity that Paddy Power Betfair are clearly trying to capitalise upon with this deal.

No certainty

Forced to respond to media reports about the negotiations which have been rife for a while, Paddy Power Betfair released a statement confirming, saying:

“It is in discussions, regarding a potential combination of the group’s US business and FanDuel to create a combined business to target the prospective US sports betting market.

Discussions are ongoing and there is no certainty as to whether agreement will be reached, or as to the terms or timing of any transaction.”

This statement makes it clear that the two companies are a fair distance away from reaching an agreement, but many believe this will be the first of many such mergers.

Sports betting fan

The lifting of the sports betting ban in the US is likely to lead to many mergers, and while Paddy power Betfair has made their intentions clear that they expect to be the buyer in this case, stockbroker Goodbody has stated that it may go the other way ore often, saying:

“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.”

Time will tell whether Paddy Power Betfair and FanDuel is the first merger that comes from the US law change, but either way, it’s unlikely to be the last.