On Monday, the US Supreme Court declared the Professional and Amateur Sports Protection Act (PASPA) of 1992 unconstitutional, effectively removing the ban on sports betting in the States. This landmark decision is bound to create a lot of movement in the gambling industry and Paddy Power Betfair seems intent on leading the way as the company has just announced their intention to purchase FanDuel, a fantasy sports site also interested in getting involved with traditional sports betting.
Cornering the Market
Paddy Power Betfair has been getting ready for this moment for a while now. Last year, the company acquired one of FanDuel's competitors, Draft, for almost $50 million, proceeding to spend a lot of money for marketing in the following months.
The acquisition of FanDuel would give the company everything they need to enter newly regulated markets in style, as FanDuel has a large base of customers, many of whom are probably primed to be transitioned to sports betting as relevant state laws are passed.
Obtaining Brand Power
Paddy Power and Betfair are undoubtedly well-known names in the UK and Europe but their brand isn't nearly as recognizable in the States. FanDuel, on the other hand, is a popular US brand with a large number of members, so the deal would put PPB in a position of strength.
Details of this potential merger/acquisition aren't publicly available at this point in time. This isn't a done deal just yet, but given the confirmation from PPB and the fact both companies would be getting exactly what they need from it, it certainly isn't far-fetched, either.
For Paddy Power Betfair, apart from the brand recognition, the FanDuel database would be a great source for acquiring new bettors from all over the US as more states pass their sports betting bills. From the FanDuel side, the knowledge and experience of the two betting giants would be invaluable as they expand into the traditional sports betting market.