Paddy Power Betfair close to buying FanDuel

Paddy Power Betfair said it is in discussions to buy US fantasy sports site FanDuel

Paddy Power Betfair said it is in discussions to buy US fantasy sports site FanDuel

In a statement noting media speculation, the FTSE 100-listed betting firm said "discussions, regarding a potential combination of the Group's USA business and FanDuel to create a combined business to target the prospective U.S. sports betting market" are ongoing.

Paddy Power Betfair is reportedly closing in on a deal to acquire daily fantasy sports (DFS) operator FanDuel.

It added, however, that "there is no certainty as to whether agreement will be reached, or as to the terms or timing of any transaction" and said a further announcement will be made as appropriate. New Jersey is among the states expected to enact legislation within weeks. While several states have significant casino industries, most have not previously been allowed to legalise bookmaking.

FanDuel, founded in Edinburgh, is backed by private equity firm Kohlberg Kravis Roberts, Google Capital and NBC Sports Ventures.

Paddy Power Betfair's move follows a ruling by the US Supreme Court this week which effectively struck out the federal ban on sports betting.

In 2017, FanDuel had planned to merge with rival DraftKings, but it was called off after the US Federal Trade Commission (FTC) said it would oppose the merger. It is a major player in the USA fantasy sports market, where players pick teams and compete against others for cash prizes. Finally, Numis Securities restated a "hold" rating and issued a GBX 8,320 ($116.04) price target on shares of Paddy Power Betfair in a research report on Wednesday, March 14th.

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