As a result of its acquisition of fantasy sports operator FanDuel, Paddy Power Betfair has reported that its 2018 revenues grew while its US investments were also hitting the full-year profit mark.
The bookmaker group’s US division grew in July 2018 following the merger between Betfair’s US division and the fantasy sports operator, which resulted in a 75 per cent growth of revenues – totalling $251m (£191m).
Paddy Power Betfair’s Chief Executive, Peter Jackson, detailed how the new opportunities across the US market have bolstered the bookmaker’s operations: “The opening of the US online sports betting market has the potential to be the most significant development to occur within the sector since the advent of online betting.
“Rather than announcing our plans, we have moved quickly to give ourselves the best chance to win in that market. We are confident that FanDuel’s nationally recognised sports brand, 8 million customers, our group betting expertise, and our market access partnerships position us very well.
The legalization of sports betting in both New Jersey and Virginia has contributed $14m (£11m) to revenues, while New Jersey achieved a 35 per cent share of the online betting market for Paddy Power Betfair.
The FanDuel partnership with Paddy Power Betfair currently consists of a number of industry-leading brands including FanDuel, TVG Network, Betfair Casino, and DRAFT.
TVG, the top online horseracing wagering business in the US, has played a key role in the combined business as it leverages the FanDuel brand’s broad reach to bring a whole new generation of fans to racing. TVG is the only dedicated US horseracing television network consisting of two channels, TVG and TVG2, which are broadcast daily into over 45 million homes.
The TVG product has enhanced the group’s market share during 2018, which has been backed by a growth in active customers and the launch of a new app including embedded streaming and new promotions.
Jackson concluded: “Our success to date supports this view, with FanDuel achieving a 35% online market share in New Jersey in its first 5 months of operation, and Meadowlands becoming a marquee venue for sports betting.”