Gambling Giant Paddy Power Betfair Makes Move into U.S. Daily Fantasy Sports Arena
Paddy Power Betfair Bolsters US Presence with DRAFT Acquisition
In a strategic move to expand its footprint in the US market, European bookmaking giant Paddy Power Betfair has purchased DRAFT, a leading fantasy mobile app, for $19 million. The acquisition positions Paddy Power Betfair in the US market and offers the potential for further investment of approximately $29 million over the next four years, based on DRAFT's business performance.
The CEO of Paddy Power Betfair expressed confidence in DRAFT's business potential, attributing its potential to its differentiated product. The CEO's statement also suggests continued interest in DRAFT's business performance and potential future investment based on performance.
Paddy Power Betfair, originally based in Ireland, merged with the UK's betting exchange, Betfair, in 2016. The acquisition of DRAFT is a strategic move to enter the US market more comprehensively. The CEO sees DRAFT as a strategic investment to grow in the daily fantasy market.
DRAFT's business performance will determine the additional investment from Paddy Power Betfair. If DRAFT meets certain criteria, a further cash consideration of around $29 million could be invested. This investment could potentially open up more opportunities for Paddy Power Betfair in the US market.
Meanwhile, Flutter Entertainment, which owns Paddy Power Betfair, has secured 100% ownership of FanDuel, the leading US sports betting and iGaming platform. Flutter extended its strategic partnership with Boyd Gaming until 2038, ensuring continued collaboration and market access. These moves strengthen Flutter's strategic position for expansion in the US market.
The core elements of their strategic expansion plan following the acquisition are full control over FanDuel, long-term partnership extension with Boyd Gaming, implementation of market access cost savings starting July 2025, and leveraging the Flutter Edge capabilities. The plan reflects a focus on consolidating and expanding US market presence through 100% FanDuel ownership and deepening local partnerships.
No specific details about Paddy Power’s US branding or standalone activities were mentioned, suggesting that their US market growth will mainly be through FanDuel as the flagship platform under Flutter’s portfolio. However, the CEO's optimism about DRAFT's performance with their marketing and technology expertise indicates potential growth in the fast-growing daily fantasy market. The acquisition could lead to Paddy Power Betfair's increased presence in states offering regulated fantasy sports.
The acquisition of DRAFT, a leading fantasy mobile app, positions Paddy Power Betfair for potential growth in the US market, specifically the daily fantasy market, due to its differentiated product and business performance. The strategic move also aligns with Flutter Entertainment's focus on consolidating and expanding their US market presence through 100% ownership of FanDuel, their flagship platform.
