Paddy Power Betfair plc Its in Merger Talks with FanDuel

Paddy Power Betfair plc Its in Merger Talks with FanDuel

UBS analysts identified William Hill as a beneficiary in the US given its established business in Nevada, while Goldman Sachs analysts said William Hill and Paddy Power Betfair were best poised to capitalize.

The bookmaker, which also runs the leading horse racing television and betting network in the USA and has an online casino business in New Jersey and and past year paid $48m to acquire DRAFT, a United States fantasy sports site.

No further details, including any financial details, were given and the group said that it would issue a further announcement "as appropriate".

The move comes just days after the U.S. relaxed its gambling laws, providing an opening for the likes of William Hill and Paddy Power Betfair.

The U.S. court overturned a 1992 federal law had effectively prohibited sports gambling except in Nevada and, to a limited extent, Delaware, Montana and Oregon. While several states have significant casino industries, most have not previously been allowed to legalise bookmaking.

FanDuel, founded in Edinburgh, is backed by the likes of Kohlberg Kravis Roberts, Google Capital and NBC Sports Ventures.

On the other hand, the daily fantasy sports options provider FanDuel would also benefit from a possible merger, as it would be able to consolidate its presence on the local market.

FanDuel was part of merger discussion a year ago with rival DraftKings but the plan was scrapped in July after a legal challenge by the US Federal Trade Commission.

Paddy Power Betfair has already invested $48m in there USA operations including the acquisition of another fantasy sports site, Draft.

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