Flutter Entertainment already owned two notable sports companies, FanDuel and Paddy Power Betfair. “Given the regulatory and taxation headwinds that European operators are facing in their home markets over the next few years, is a very attractive long-term positive for the companies under our coverage and as such is supportive of their long-term growth prospects,” they said.Ireland-based sports betting giant Flutter Entertainment has gotten even bigger this week. However, while Paddy Power hopes to be the buyer in this case, analysts at the stockbroker Goodbody said European betting firms could find that they are tempting targets for US companies looking to purchase expertise. They closed up a further 6% on Wednesday at £82.15 as markets digested the potential for the company to add FanDuel to its existing US operation.Īs well as its fantasy sports presence via Draft, Paddy Power Betfair owns horseracing TV channel TVG and an online casino in New Jersey, the state that challenged the ban on sports betting and has made the most progress putting preparations in place for the industry to grow. Paddy Power Betfair’s shares jumped by more than 12.2% in a day when the supreme court announced its decision earlier this week, signalling analysts’ belief that it is well placed to launch an assault on the US market.

If a deal goes ahead, it is likely to be worth considerably more than the $48m (£35.6m) that Paddy Power paid for FanDuel’s smaller rival Draft last year.įanDuel, which was blocked from merging with its main competitor DraftKings by the US competition regulators last year, has been valued at $1bn by some analysts. Such websites have slipped through the net of the US ban on sports betting because they are seen as games of skill rather than of chance but an alliance would help Paddy Power push betting products through the site. Paddy Power confirmed it was already in talks with FanDuel “to create a combined business to target the prospective US sports betting market”.įanDuel is a web-based fantasy sports game with 6 million registered users, who can put together virtual teams in sports such as American football and win cash prizes based on their success against other players.

While US states will have to draw up their own gambling laws, a process that could take years in some cases, the shift in the US landscape is expected to encourage British firms to seek takeovers or become targets themselves. Many analysts believe London-listed firms are well placed to grab a slice of the US market, where some estimates say nearly $150bn (£111bn) in illegal wagers are placed every year.

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