Paddy Power Betfair, European-based parent company of the U.S. racing network and advance deposit wagering company TVG, is in negotiations to buy FanDuel, the fantasy sports site based in New York. Discussions between the two companies was first reported by LegalSportsReport.com.
In a subsequent statement published by LegalSportsReport, Paddy Power Betfair said: “Paddy Power Betfair plc (“the Group”) notes the media speculation, and confirms it is in discussions regarding a potential combination of the Group's US business and FanDuel to create a combined business to target the prospective US sports betting market.
“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. A further announcement will be made as appropriate.”
Word of the negotiations between the two companies came days after the United States Supreme Court struck down a federal law prohibiting states from offering sports betting. The case was prompted by efforts in New Jersey to bring sports betting to the state, in part to help revive Monmouth Park.The Oceanport, N.J., racetrack said it plans to to have its William Hill Sports Book in operation by Memorial Day.
Churchill Downs plans to move into the New Jersey sports betting field as well, announcing an agreement with the Golden Nugget casino in Atlantic City. Company officials hope to be licensed and offering online casino games and sports betting by 2019.
Paddy Power Betfair, a major player in the sports betting landscape in Europe, already operates an online casino in New Jersey. The company previously purchased DRAFT, another fantasy sports site. FanDuel and DraftKings, the market leaders in the U.S. fantasy sports industry, ended merger talks last year over concerns that the Federal Trade Commission would not look favorably on the deal. FanDuel said it intends to enter the sports betting business following the Supreme Court ruling.
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