Paddy Power acquires sports company Draft2017-05-11 13:00:00
Paddy Power recently announced their acquisition of Draft, a fantasy sports company. This cost Paddy Power a cool €17 million to finalise the deal. It is a significant acquisition for the powerhouse bookmaker as it is the company’s first venture into the fantasy sports market in America.
Depending on how the business performs, Paddy Power plans to pump in a further €26 million over the next four years. The company forecasts an earnings loss of around €18 million before interest, depreciations, and taxes come into play.
A bold step into the American market
“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,” said Breon Corcoran, chief executive of Paddy Power Betfair.
In a note to investors, analysts at Davy said: “We see this acquisition as a relatively modest bet on the future of the daily fantasy sports market in the US. It provides the group with optionality around the future of this tangential product space in the US and elsewhere and could add to the diversification of the group over time.” This investment may cause a dip in earnings for the company by around 3 per cent. Davy also stated that “However, the market opportunity is such that this dilution could represent a small price to pay for longer-term returns”.
A little bit about Draft
Draft is a company based in New York and through its nifty little app it offers daily fantasy sports drafts for cash prizes on a range of popular American sports including basketball, football, baseball, golf, and hockey. The main appeal of this app is that players have a 200% chance of winning when compared to other fantasy sports websites.
It is one of the simplest ways of playing daily fantasy sports as players can play for pride or profit with real money at stake. To date, Draft has over 250,000 players who have made over a staggering 1,500,000 drafts. The drafts are easy to make and take a maximum of 5 minutes to complete. Another reason many fantasy sports fans use this app is because it is the only app available that uses Snake Drafts. These are special drafts where a player can do the same type of draft that you’re used to but just for one day or week. Players can choose from a plethora of different draft sizes and entry amounts. It is worth noting that drafts on the app only last for one week for golf and football and for only one day for basketball, baseball, and hockey. The app is really easy to use and extra fun when you play it with friends and family.
The takeover of Draft will not really impact on the company as it will continue to be run by its current CEOs Jeremy Levine and Jordan Fliegel. With this acquisition, Paddy Power is planning on making some big waves in the lucrative fantasy sports market in America.
Check out our Paddy Power Casino Review now!
Best Welcome Bonus
Vegas ParadiseGrab an excellent 50% Welcome Bonus up to £100 plus 25 Free Spins at Vegas Paradise!#Ad New Players Only. UK players only. Wager from real balance first. 50X wager the bonus. Contribution varies per game. selected games only. Wager calculated on bonus bets only. Bonus valid 30 days / Free spins valid 7 days from receipt. Max conversion: 3x the bonus amount or from free spins: £20. Min Deposit £10. Withdrawal requests voids all active/pending bonuses. Excluded Skrill deposits. Full Terms Apply. BeGambleAware.org.Read ReviewClaim Bonus
CasinoLuckCasinoLuck welcomes you with a superb 100% Welcome Bonus up to £50 and 50 Spins on the Starburst slot!!Read ReviewClaim Bonus
Genesis CasinoGenesis Casino welcomes you with a 100% bonus up to £100 + 300 Free Spins on Starburst!!#Ad 18+ Full T&C's Apply.. New players Only. £10 min deposit. £5 max bet using bonus. 40x wagering applies. Bonus valid for 14 days. 30 Spins will be credited instantly upon qualifying deposit + then 30 per day for 9 days on Starburst. Free Spins valid for 72 hours from credit. Max Free Spins winnings £100. Ewallets excluded. - BeGambleAware.orgRead ReviewClaim Bonus
Spin HillSpin the Mega Reel for the chance to win up to 500 Free Spins with Spin Hill!#Ad New Players Only, Min Deposit £10.00, £8.00 Max Win Per 10 Spins, Max Bonus Equal To Lifetime Deposits (Up To £250.00), 65X Wagering Requirements And Full T&CS Apply Here. Cashback Must Be Claimed On-Site, Calculated As A % Of Daily Deposits, Minus Withdrawals. Further T&Cs Apply. 18+. BeGambleAware.org.Read ReviewClaim Bonus