Paddy Power Betfair (PPB) has confirmed the creation of a new enterprise to service the US market, as it combines its Betfair US operations with leading daily fantasy sports operator FanDuel.
Murmurings of talks between the two parties first surfaced in mid-May, with confirmation of ongoing talks coming a short time later and confirmation of the creation of the US-facing subsidiary made by PPB on May 23.
The new company is to be called FanDuel Group Inc, with its portfolio including a number of “industry leading” brands, including FanDuel, TVG, Betfair Casino and DRAFT.
Strengthening its position in the US market in the aftermath of US Supreme Court’s decision to overturn PASPA, PPB owns 61 per cent of the newly created FanDuel Group, with existing FanDuel investors owning 39 per cent.
Furthermore, it has also been detailed PPB will contribute $158 million in cash towards funding the new business, and clearing FanDuel’s corporate debt, thought to be in the region of $76 million.
Previously confirming the combination, Peter Jackson Group CEO of Paddy Power Betfair stated: “We are excited to add FanDuel to the Group’s portfolio of leading sports brands. This combination creates the industry’s largest online business in the US, with a large sports-focused customer base and an extensive nationwide footprint.
“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.”