Paddy Power Betfair has expanded into the US daily fantasy sports market with the acquisition of early-stage operator DRAFT.
The company has paid an initial cash consideration of $19 million (€174 million) to take ownership of DRAFT, with a further consideration of up to $29 million payable over the next four years depending on performance.
DRAFT is a mobile-led business that Paddy Power Betfair said will complement its other operations in the wider US market.
In addition, Paddy Power Betfair said DRAFT will now have access to its various marketing and technology capabilities, while co-chief executives Jeremy Levine and Jordan Fliegel will continue to run the business.
Breon Corcoran, chief executive of 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.”