FanDuel plans to offer online casino and sports betting, becoming the latest in a growing list of operators to move into the American market.
This popular fantasy sports platform is owned by Irish betting giant Paddy Power, which operates a chain of licensed betting shops in Ireland and the United Kingdom, as well as Ireland’s largest telephone betting service.
The recent rush to tap into the lucrative new US market comes after the United States Supreme Court approved the legalization of sports betting at the start of May.
A number of states have already started accepting sports bets, and more will be following suit in the near future.
Race to market
Even before the Supreme Court made its decision to allow the legalization of sports betting legalization, companies from home and abroad were putting measures in place that would allow them to take advantage quickly if approval was given.
The behemoths of sports betting in Europe and elsewhere, such as Paddy Power, Bet365, and William Hill, have been making moves in the US market. They have the expertise when it comes to running a successful sportsbook, which will be a valuable asset to casinos, as well as for establishing an online presence in the country.
Bet365 has been a leader for many years in the sports betting scene in Europe. They are now set to partner with the Hard Rock Hotel and Casino in Atlantic City. Once this partnership has been approved, they will be managing the sportsbook on behalf of the casino.
The likes of Paddy Power and William Hill have struck similar deals with casinos and racetracks in the United States. William Hill, for example, has been a partner of the Monmouth Park racetrack since 2013 and has also struck a deal to manage the sportsbook of the Ocean Resort Casino in Atlantic City.
Perhaps the most notable move that has been made by a European gambling behemoth in the US space came from Paddy Power Betfair. Following the Supreme Court decision, Paddy Power Betfair entered into a partnership with the FanDuel Group. Along with DraftKings, FanDuel dominates the immensely popular fantasy sports scene in the US. This puts them in an ideal position to instantly dominate the sports betting market, as they have already built up an audience for their offerings.
Under the partnership with Paddy Power Betfair, the Ireland-based bookmaker own 61% of the business and has an option to increase its stake to 80% in the next three years and 100% over the next five years. FanDuel has a market share estimated at 40% of the daily fantasy sports scene in the country, with about 7 million registered customers.
Latest FanDuel announcement
FanDuel has announced its intention to open an online sports betting and casino for New Jersey gamblers. The goal is to launch this platform for the start of the NFL season.
The company can use the license that belongs to the Meadowlands Racetrack, and its internet gambling license can be acquired through its relationship with the Golden Nugget Casino in Atlantic City.
IGT and GAN will provide the technology for the platform. The CEO of GAN is Dermot Smurfit, who talked about how his company is already a fair way through the development process for the platform. He said: “Online sports betting ‘go-live’ preparations for FanDuel are well advanced and we remain confident in launching integrated sports betting alongside our existing internet casino later this year.”
This is just one of a few big players that are racing to market to get their online gambling platforms created. New Jersey sports betting began in June, and more than $16m (£12.25m) was staked on sports offerings in the first two weeks.
Online gambling has been around in the state since 2013, and approximately 10% of the casino revenues in Atlantic City come from online offerings.
The Ocean Resort and Borgot casinos are the only ones currently offering sports betting, along with the Monmouth Park and Meadowlands racetracks. With the NFL season beginning at the start of September, many others are trying to obtain the appropriate licenses and platforms to be ready in time for the start of the season.
The Golden Nugget, the Hard Rock, and Caesars Entertainment casinos are all in the process of obtaining their licenses.