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  • SelfCharmer

    Some good news for the ecosystem skeptics: a major UK bookmaker has agreed to purchase DRAFT for $48m

    Paddy Power Betfair are a major player in the UK, and I can only see this as a good sign for the ecosystem, hopefully giving birth to a major challenger against the merged FD/DK.

    Also, being a major European brand, hopefully they have the ability to expand DFS into the UK soccer market properly

    https://www.forbes.com/sites/darrenheitner/2017/05/10/paddy-power-betfair-pays-48-million-for-daily-fantasy-sports-co/#3e1556a620f7

  • db730

    RotoGrinders Media Director

    • 465

      RG Overall Ranking

    • Ranked #92

      RG Tiered Ranking

    • 2016 DraftKings FFWC Finalist

    • 2016 DraftKings FBBWC Finalist

    This is HUGE for DRAFT. Having enormous capital behind them gives them a tremendous opportunity to scale to a level that is going to make their product that much better. Congrats to Jeremy and Nicolo.

  • dubchr7

    • Blogger of the Month

    if only i could play in Tennessee

  • flip4flop

    @dubchr7 said...

    if only i could play in Tennessee

    and VA

  • db730

    RotoGrinders Media Director

    • 465

      RG Overall Ranking

    • Ranked #92

      RG Tiered Ranking

    • 2016 DraftKings FFWC Finalist

    • 2016 DraftKings FBBWC Finalist

    i’m guessing both those two things will be achieved by this to be able to afford the regulatory costs of it.

  • herberh2

    “It is a full acquisition of DRAFT by Paddy Power Betfair; however, Levine and his co-CEO Jordan Fliegel will remain with the company as salaried employees and will be incentivized to continue to scale the product. Levine, only thirty-years old and already seasoned in selling fantasy sports-related products (he formerly sold StarStreet to DraftKings in 2014), says that scale is the key word with this acquisition and expects that the company will grow from ten people to twenty very quickly, as well as increase its marketing spend by roughly 100x over what was spent last year. Paddy Power Betfair chief executive Breon Corcoran estimates that the substantial marketing investment will cause DRAFT to incur a $20 million operating loss during this financial year.”

    20M operating loss means a big marketing budget and that usually translates to user deposit bonuses or overlays.

  • db730

    RotoGrinders Media Director

    • 465

      RG Overall Ranking

    • Ranked #92

      RG Tiered Ranking

    • 2016 DraftKings FFWC Finalist

    • 2016 DraftKings FBBWC Finalist

    Format doesn’t lend itself to overlay…but guessing we see some advertising to the masses this year.

  • SelfCharmer

    As a UK player, I can let any US players know that although it is sportsbook focused (mostly on soccer), Betfair Paddy Power spend HUGE amount on advertising. If they even dedicate 10% of their advertising to DRAFT, and spend a small amount revamping the site/app etc to cater toward the european market, they could easily become a major player in the DFS world. My guess would be that they will be looking to have everything up and running either by the new EPL season starting in July/August, or if they are going to aim it at American sports, it will be by the beginning of the NFL season.

    Either way, exciting to have a major competitor to DK/FD, especially as DK is the only dfs site that UK players can use with any reasonable player pools

  • Bigo1

    • 859

      RG Overall Ranking

    @SelfCharmer said...

    they will be looking to have everything up and running either by the new EPL season starting in July/August, or if they are going to aim it at American sports, it will be by the beginning of the NFL season

    I doubt they will be ready by September in the UK. They haven’t started any license application process here, and it usually takes about 4 to 6 months. Also, I am pretty sure they will want to concentrate on the US first.

    For Paddy, this acquisition is first of all a way to have a foot in the US. I know that sports betting and DFS are completely different (!!), but they probably see that sports betting is getting some positive legal momentum, and do not want to start from scratch if/when some states officially legalise sports betting.

    It is however a very positive news for the industry. Paddyis very well capitalised with a market cap of around £7.5bn and . They are not investing time, money and efforts on Draft to be second in the tiny DFS market.

    For DK/FD, it is obviously a huge threat. On the other hand, there is no way that the merger will be turned down by antitrust regulators.

  • XxHeisenbergxX

    Betfair has also made a big splash in horse racing..especially in the state of NJ …TVG where I play offers Betfair odds only to NJ residents…they also have betfair casino as well. Being I am a huge horse racing fan and only play dfs to amuse myself at work I will definitely be moving my business to betfair..I actually trust this company. I heard on TVG that these games might be draft based rather than salary capped based…we will have to see..I know TVG was excited. I have been usig TVG for years i never have issues making withdrawls or getting my tax info. I actually have a TVG debit card now where my withdrawals get loaded to my card next day…excellent news…good job betfair!

    Betfair does business right! DK/FD will be in trouble.

  • nam6641

    • x2

      2016 DraftKings FFWC Finalist

    Wow, I remember playing NFL on there 2 years ago, it was a struggle to ever get matched for the $100 game (which was the highest dollar amount then) so I stopped playing due to lack of players. They must have kicked it up to sell for $48M.

  • gavlam

    Do they have any large gpps?

  • jilesofthetrees

    • 2016 NASCAR Live Finalist

    48 million seems like a staggeringly overpriced valuation. you’re getting a handful of employees shrug, a userbase of 1000’s prob not 10’s of thousands? and the software which its hard for me to imagine is worth more than a couple mil? Be interesting to get purchasers thoughts.

  • sonic999

    • 858

      RG Overall Ranking

    According to British media, they paid $19 million for DRAFT, with that figure rising to $48 million in the future if certain revenue benchmarks are met.

  • cmbarbee226

    I haven’t been impressed, so there will need to be change. The concept is nice, but otherwise this seems to have been their end goal.

  • draped

    @cmbarbee226 said...

    I haven’t been impressed, so there will need to be change. The concept is nice, but otherwise this seems to have been their end goal.

    I agree that I don’t like this particular style of DFS, but I do see one huge advantage of it for them. Casual players don’t have to spend as much time researching an entire slate because you only pick the top guys anyway. So you could make the argument that you can be more effective with less time spent researching on Draft. And if it brings in lots of casual players, then you can bet that the sharks will follow too.

  • Cpjttogether

    Tvg has always payed me fast. Maybe some kind of tvg dfs partnership would be good. Dfs and horse racing have a lot of things in common.negative and positive

  • yousif

    • Blogger of the Month

    A month late but great time to revisit this given DK & FD merger block. A DK & FD merger could have closed off the DFS market to other entrants & created a monopoly.

    Clearly there’s still plenty of room for great & differentiated products. Betfair’s acquisition of DRAFT shows a UK entity betting that there’s still a big slice of pie in the US DFS market, and this plus the latest round in Boom suggests confidence in an even bigger market once DFS becomes legalised.

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