Paddy Power Betfair snaps up US-based fantasy sports startup Draft

 
Shruti Tripathi Chopra
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Results at Cheltenham 2017 contributed to Paddy Power's growth in the first quarter (Source: Getty)

Paddy Power Betfair has snapped up a US-based fantasy sports company in a $19m (£14.6m) deal.

Draft, which runs online sports matches in which players can compete with their friends, will continue to be run by co-CEOs Jeremy Levine and Jordan Fliegel.

Paddy Power Betfair said further cash consideration of up to $29m will become payable over the next four years depending on the business' performance. The betting giant also said it expects Draft to post a $20m operating loss this financial year following “substantial marketing investment”.

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Breon Corcoran, chief executive, Paddy Power Betfair, said: "We are excited to be bringing Draft into the group and to further increase our presence in the US. Draft has a differentiated product and we believe the business, with the support of our marketing and technology expertise, can take share in the fast-growing daily fantasy sports market."

Paddy Power Betfair, which revealed its first quarter results earlier this month, saw sportsbook stakes grow by 18 per cent to £2.7bn. In constant currency terms this was a nine per cent increase.

The revenue percentage from sportsbook increased from 7.5 per cent to 8.8 per cent.

Sports revenue grew by 28 per cent to £326m while gaming revenue rose six per cent to £90m.

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