Paddy Power Betfair (PPB) is still not a household brand in the US. But with two strategic deals behind them, the group is set to start to operate in 45 states. As long as state legislation allows it, of course. Even if its first-half results are not too impressive for now still, the company believes in its strategic acquisitions. And partnering with FanDuel and Boyd Gaming leaves it in a great starting position to continue its expansion in the US.
Growing US Footprint
Indeed, PPB’s US profits in the first half of the year were just $6.44 million. These numbers are not too interesting for the investors. Actually, the markets reacted by shares falling by 3%. This happened right after the publishing of the results on August 8. Also, there is another side to consider. Namely, that the US sports betting market is so far relatively small. At least, in comparison with the online casino market, for instance.
But PPB is aware of these conditions, and it knows it will lose more money for some time. But the company’s vision is a long-term one. In fact, PPB’s strategy to establish itself in the US passes through the two deals mentioned above. Between the two brands, TVG and FanDuel, it has daily fantasy sports and horse-racing. But also sports betting in NJ and real money gaming operations in 45 states.
Ready to lose…for now
These strategic deals are the engine of the company’s U.S. expansion. And as PPB CEO Peter Jackson believes, it gives them “a real advantage over other operators”. He pointed out the example of FanDuel in New Jersey when its sportsbook opened at Meadowlands Racetrack; it had over 100,000 players. A large number of them were coming from Betfair online casino, which is, by the way, the second biggest online casino in the state.
To sum up, PPB is set for a great start of the NFL season even if the company did not confirm the launch date of its mobile sports betting app. But by the look of things, it shouldn’t take too long “We will launch online sports betting on time, ” Jackson added. So it’s all great news for us all since PPB is famous to offer competitive odds, at least in Europe!