Paddy Power Betfair’s new US subsidiary agrees partnership to deliver growth
FanDuel Group has linked up with Boyd Gaming in partnership to deliver sport betting and online casino markets in the US
Last month Paddy Power Betfair merged its US unit with New York-based FanDuel, giving it 61% of the merged business in exchange for assets and €135m cash. Photograph: Paddy Power Betfair/PA Wire
Paddy Power Betfair’s new US subsidiary FanDuel Group has linked up with Boyd Gaming in a strategic partnership to deliver sport betting and online casino markets in the US. The move comes following a recent Federal court ruling lifting a ban on sports betting in most US states.
Announced on Friday, the deal will see fantasy sports specialist FanDuel gain market access for its sports book and online gaming products in several US states. In turn,it will provide Nevada-based Boyd Gaming with technology and related services to operate Boyd Gaming-branded mobile and online sports betting and gaming services in those states.
The agreement will cover all states where Boyd Gaming currently holds gaming licences, excluding Nevada, and any states in which it acquires a gaming licence or market access in the future, including under Boyd Gaming’s recently announced market-access agreement with MGM Resorts International.
In a statement Paddy Power Betfair said the agreement, along with FanDuel’s existing market access deals in New Jersey, New York and West Virginia, means it will potentially have access to 15 states nationwide.
As part of the transaction, Boyd Gaming will take a 4 per cent equity stake in FanDuel Group, and has an option to purchase a further 1 per cent stake.
Last month Paddy Power Betfair merged its US unit with New York-based FanDuel, giving it 61 per cent of the merged business in exchange for assets and €135 million cash. It has the option to take 80 per cent after three years, and 100 per cent after five.