Paddy Power Betfair and Boyd Gaming get into a Strategic Agreement

Paddy Power Betfair has again proved to be on the forefront establish a strong foothold in the U.S sports betting markets. Paddy Power Betfair is a betting company based in Dublin and Ireland, but it is now operating in U.S markets with sister companies such as FanDuel.

 

It seems Paddy Power Betfair team had prepared a beast marketing strategy to give them the top-notch spot in the sports gambling markets in the U.S. Paddy Power has been moving in the U.S markets more aggressively than all other online casinos. The UK bookmakers have recently made another significant move by announcing a strategic partnership between Boyd Gaming and FanDuel. It was a win to win situation for both companies type of agreement where while working together they will dominate the U.S bookmarking markets primarily in the sports betting and online gaming fields.

 

FanDuel is a popular U.S online fantasy sports betting website. In May 2018 Betfair US purchased 61% shares of FanDuel total shares plus an option to keep on increasing more dividends percentage up to 80% in 3 years or to 100% in five years period. Therefore when Paddy Power Betfair struck another deal with Boyd Gaming via FanDuel they opened up for doors to successfully capitalize on the sports and online betting all over U.S. Boyd Gaming is one among the biggest multi-state casino companies in the U.S that owns more than 29 casinos in 10 states while FanDuel has over 8 million customers across 45 states in America. Boyd Gaming stakes shot up to 1.7% at 36.79 on that day’s stock market.

 

Terms and conditions binding their agreement subjected to state laws and regulatory board approvals affirm that FanDuel will provide technology and other related services to operate all online and sports betting sites that are under Boyd Gaming platforms. Financial analysts and other stakeholders have a strong positive feeling that the deal would have secured a long-term solution of running the largest sports betting and online gaming services.

 

The Chief Executive Officer of the FanDuel group, Matt King, said that “There is incredible momentum in the sports betting space and we look forward to partnering with Boyd Gaming to bring the FanDuel Sportsbook to more customers across the United States.” This partnership will greatly help FanDuel solve the problem of its accessibility in different states. Despite that the supreme and other state courts legalized sports betting and online gaming, bookmakers still have a big challenge in getting operational licenses from many states governments. By partnering with Boyd Gaming, Fanduel will joyride on the advantage that they will be operating across all current and future states that Boyd Gaming will have its footprint.

 

The Chief Executive Officer of the Boyd Gaming group said that “we will be positioned to build market-leading sports-betting and online gaming operations in each state as they move forward with these new forms of entertainment. We will also see immediate benefits from our cross-marketing agreement with FanDuel, introducing millions of FanDuel customers to Boyd Gaming’s properties nationwide.” Boyd Gaming will be offered with technical know-how and resources that will run gaming and betting operations in a more user-friendly in return for providing them with market accessibility.

 

In short, this deals allows Boyd Gaming run their online gaming and sports betting websites on using FanDuel’s technology while in return they let FanDuel operate its own online gaming services in all states where Boyd Gaming have or will have a license of operation with an exemption of the Nevada state.

 

Wagering Sports Betting Causes Optimism to Giant Gambling Firm

Paddy power Betfair has scaled its revenue up to a tune of 7 percent reaching to 867 million pounds in a bare six months ending at June 30th. According to interim results, the gambling giant registered underlying earnings of 217 million pounds in constant currency terms scaling up by 1 percent.

 

Before tax, profits were up by 4 percent reaching 106 million pounds in the half year period. The CEO affirmed that the firm had made significant milestones against its strategic priorities. He further added that trading through the second quarter was good and the firm boasted of busy and successful months. He, however, confirmed that the double-digit growth was as a result of contributions from all brands and the various firm’s operating divisions.

 

Individually, different operating divisions showed a correlation in individual revenue increase with Australia registering a 19 percent increase and the United States 20 percent, all during the second quarter. This was despite the headwinds experienced in both the US and Australia. However, the gambling giant disappointed investors as it missed its projected six months revenue growth. Alistair Ross, an analyst at Investec, termed the performance as a ‘’solid miss’’.

 

Talking to the FTSE, the firm’s CEO claimed that the full-year projection was partly influenced by changes in the tax regime changes effected in Australia as well as the 770 million dollar takeover deal with US sports company FanDuel.

 

Despite missing the half year 9.9 percent revenue projection by a big lag, the firm managed a 13 percent increase in revenue in the second quarter. According to Ed Monk, a director at Fidelity Personal Investing, Paddy Power Betfair is bound to gain from the already opening betting markets in the United States. He further affirmed that through its expansion of FanDuel site, pricing of shares rose and investors now expect to realize a rise in operational performance and subsequent growth in the market share onwards.

 

Experts in the firm have further given an expectation that the earnings before interest, taxation, depreciation, and amortization should lie between 460 million pounds and 480 million pounds prior to the impact caused of US betting. This is as a result of a recent reflection in the trading stance with an overwhelming anticipated performance in gaming. This is after an offset by prolonged weakness in horse racing revenues, Australian taxes impact, and an increase in product fee as well as the addition of the FanDuel fantasy sports in the firm’s operation.

 

Looking at the agreement between Paddy Power Betfair and FanDuel in July, the gambling giant is expected to offer more daily fantasy games-which will open the market enormously. The firm’s CEO affirmed. He continued to assert that FanDuel has created a large online business portfolio after entering an agreement with Boyd Gaming. The firm is expected to cover an extensive national stretch including New Jersey. This was possible after a Supreme Court ruling allowing individual states to come up with their own independent betting laws. Additionally, the CEO has confirmed that the firm is now better-positioned in-terms of visibility and regulatory of fiscal changes stretching across the UK, US, and Australia. In this respect, the company is expected to build a sustainable business position that will guarantee shareholders good returns over a long time.

 

According to the company, the key ways of surviving the wagering market in the US is by ensuring brand recognition from the widely stretched customer base, ensuring market access and investing substantially in the operating capabilities of the firm. It is important to note that significant optimism has been realized by the company owing to the largely wagering sports markets in the US.