FanDuel retail ready for go after PPB merger completes
Fanduel’s retail sports betting operations in the US are to launch within days after the firm sealed its merger with Paddy Power Betfair’s US division.
The FanDuel Sportsbook will open at Meadowlands Racetrack in New Jersey at 11am on Saturday. The launch is confirmation that while it was Betfair US that announced a long-term agreement to provide online, mobile, and retail sports betting products at the venue, it is the FanDuel name that will be the company’s primary brand in the US.
In a statement it was confirmed that FanDuel CEO Matt King (pictured) is to be CEO of the newly combined FanDuel Group, which also includes online horseracing wagering business TVG. King was appointed as the new chief executive of FanDuel in November 2017.
With a presence across 45 states and eight million customers, and $265m (€227) in annual revenue, FanDuel Group claims to be “the largest online sports destination in the US”.
“The new company embodies the strengths of TVG, Betfair US and FanDuel and brings together the brilliant talent, technological expertise, and shared resources to capture the US market opportunity in front of us,” said King.
“This is a pivotal time for the sports world in general, and we are poised to build upon our individual successes and join forces to build the best fan experience in the sports industry.”
Betfair US CEO Kip Levin will become president and COO and will remain in his role as CEO of TVG, where he will oversee the horseracing and television businesses.
Paul Rushton, currently commercial finance director of PPB, will become the CFO of FanDuel Group.
Paddy Power Betfair entered a definitive agreement to acquire FanDuel – which has a 40% market share of the US DFS market - just days after PASPA was repealed by the Supreme Court in May.
PPB agreed to contribute its existing US assets plus $158m in cash for a 61% share of the combined business, with FanDuel investors owning the other 39%. A ‘mechanism’ was agreed to take PPB’s ownership to 80% after three years and 100% after five.
The first bets in New Jersey were accepted at Monmouth Park through its partnership with William Hill on June 14, just days after the state legalised sports wagering. The Borgata Hotel opened its The Race & Sports Book on the same day.
Speaking recently about its deal with Betfair US, Jeff Gural, chairman of Meadowlands and Tioga Downs in New York, said: “Betfair’s world leading products and experience proved the best choice. We are eager to get started with our partners, with whom we have had a long relationship for racing with TVG, on this exciting venture.”