Paddy Power Betfair has launched a bid for fantasy sports league company FanDuel, in the first of what is predicted to be wave of takeover interest prompted by the US Supreme Court’s legislation on sports betting.
Fan Duel has an estimated 6 million users allows sports fans to gamble on fantasy sports leagues and contests. The firm has been valued at $1 billion by some analysts.
Paddy Power Betfair entered the US fantasy sports market last year with the acquisition of Draft, a US fantasy sports site, for $48m (£35m).
UK Gambling companies shares skyrocketed after the Court’s decision to repeal PASPA, a 26 year-old law that banned sports betting in the US.
While Paddy Power have confirmed they are looking to buy the company some analysts believe that European betting companies could be more tempting for US companies looking to purchase expertise.
Analysts at the stockbroker Goodbody said: “Given the regulatory and taxation headwinds that European operators are facing in their home markets over the next few years, [the repeal of PASPA] is a very attractive long-term positive for the companies under our coverage and as such is supportive of their long-term growth prospects.
“It also could see European operators speculated as potential M&A targets, given the unique sports betting skill set they possess,” said the analyst Gavin Kelleher.