Paddy Power Enters US Fantasy Sports MarketJake Cooper | 23 May 2017
Paddy Power is one of Europe’s leading online book makers with a massive influence in the world of global sports betting. Now, the iconic sportsbook is breaking into the world of daily fantasy sports –and more specifically, the daily fantasy sports industry in the United States.
The UK-based firm announced that it is set to acquire the rights to daily fantasy sports mobile app DRAFT after settling on a purchase price of $19 million. Further cash considerations for the deal will come to an extra $29 million over the next four years, with the figure depending on how the business performs during the time.
Forbes was the first industry expert to report on the deal, which is Paddy Power’s first major acquisition since it merged with its competitor Betfair back in 2016. The new acquisition of the DRAFT app will significantly expand Paddy Power-Betfair’s presence in the US daily fantasy sports market, and could also favourably position the firm for a potential future to gain footing in the traditional American sports betting industry as well.
DRAFT’s Original CEOs Will Stay On at Paddy Power
Paddy Power CEO Breon Corcoran has commented on the deal, saying that his firm is excited to be able to incorporate DRAFT into its offerings and increase its footprint in the US. DRAFT, the executive noted, is a unique product that Paddy Power is confident will be able to take part in the rapidly-growing daily fantasy sports market, with the help of its new owner’s technological and marketing expertise.
The DRAFT app was originally launched in 2015 to offer small prize pools and tournaments to recreational daily fantasy sports players. Its CEOs Jordan Fielgel and Jeremy Levine will keep running the company despite its acquisition, and will also be able to use Paddy Power’s marketing and development resources to assist them in doing so.
Paddy Power Showing An Interest in Nevada
It has been noted that Paddy Power has also shown interest in the regulated sports betting market in Nevada, and in 2016 Betfair was also the first to debut a legal betting exchange on New Jersey horse racing. The conglomerate will now seek to enter the daily fantasy sports market and go head to head with other providers like US giants DraftKings and FanDuel, both of whom are currently awaiting a merger approval from the Federal Trade Commission.
With the successful state of the US daily fantasy market at present, Paddy Power stands a very definite chance of creating a fruitful enterprise in the American industry. Research firm Eilers and Krejcik Gaming have revealed that the daily fantasy industry earned over $3.2 billion in revenues last year, leaving plenty of room for competition that Paddy Power is preparing to fill.