The Supreme Court’s repeal of PASPA’s federal mandate has likely triggered a further betting industry arms race, as US betting news source LegalSportsReport.com details that Paddy Power Betfair Plc (PPB) is ‘close to acquiring’ DFS operator FanDuel.
Entering 2018, the governance of FTSE100 PPB stated that it was ‘reviewing all options’ for further expansion within the US market.
The UK betting group has an established presence within the US market, operating California-based horseracing track operator and broadcaster TVG, which was acquired in 2009 by Betfair’s legacy enterprise for $50 million.
PPB governance is reported to have ‘accelerated discussions’ with FanDuel, following SCOTUS’ ground-breaking judgement.
The acquisition of FanDuel would see PPB gain significant traction within the US, securing a large database of players within multiple states, whilst obtaining a recognised brand to target US sports consumers.
In its update, LegalSportsReport.com did not reveal a PPB target price for FanDuel. However, the news source detailed that FanDuel would likely be sold below its $1 billion valuation.
To date, FanDuel has raised + $430 million in venture funding, competing against main DFS marketing rival DraftKings.
Last March, US news sources reported that FanDuel governance were seeking to ‘go public’, undertaking a reverse merger guided by Hollywood financier Jeff Sagansky, who had developed special investment vehicle Platinum Eagle Acquisition.
Sagansky was reported to have raised $325 million, seeking to list FanDuel as a Nasdaq enterprise. FanDuel investors had been reported to want to pursue a sale or public offering of the company, which had reached its ‘peak DFS’ position within the US market.