European online and retail sportsbetting and gaming operator Paddy Power Betfair has reportedly announced that it is in negotiations regarding the possible purchase of American daily fantasy sports operator FanDuel Incorporated.
According to a report from the British Broadcasting Corporation (BBC), Dublin-headquartered Paddy Power Betfair entered the American daily fantasy sports market last year following its $48 million purchase of PlayDraft.com and stated earlier today that it is now considering a move for FanDuel Incorporated in order ‘to create a combined business to target the prospective United States sportsbetting market’.
The BBC reported that Paddy Power Betfair initiated negotiations after Monday saw the United States Supreme Court overturn a lower court decision in ruling as unconstitutional the Professional and Amateur Sports Protection Act (PASPA) of 1992. This piece of legislation had instituted a federal ban on all sportsbetting in the United States with the notable exception of venues located in the states of Delaware, Oregon, Nevada and Montana with its overthrow now certain to result in a nationwide proliferation in regulated sports wagering.
“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,” read a statement (pdf) from Paddy Power Betfair. “A further announcement will be made as appropriate.”
The BBC reported that New York City-based FanDuel incorporated was established in 2009 and that its around 400 employees provide aficionados with a myriad of Major League Baseball (MLB), National Football League (NFL), National Hockey League (NHL) and National Basketball Association (NBA) fantasy sport gaming markets. The firm, which targets the estimated 30 million fans of fantasy sports spread across North America, purportedly abandoned a proposed merger with Boston-headquartered rival DraftKings Incorporated last year following a competition ruling from the Federal Trade Commission.