TVG's parent company to merge with FanDuel

The parent company of TVG has agreed to merge with FanDuel, a leading daily fantasy sports site, in a consolidation seeking to capitalize on a recent Supreme Court decision that could open the doors to sports wagering in a number of U.S. jurisdictions.

Financial terms of the merger were not disclosed. The two companies said in a release that the transaction is expected to close in the third quarter this year.

TVG is owned by Paddy Power Betfair, itself a merger of a British bookmaker and exchange-wagering site. In the U.S., in addition to TVG, the company operates an exchange-wagering site limited to New Jersey residents, and an online casino, also restricted to New Jersey. In Europe, Betfair is the dominant exchange-wagering site.

FanDuel and other daily fantasy sports sites are considered by some to have an early advantage in the sports-wagering market because the companies have already drawn thousands of customers who have shown a willingness to stake their money on sports contests.

“This combination creates the industry’s largest online business in the U.S., with a large sports focused customer base and extensive nationwide footprint,” said Peter Jackson, the chief executive of Paddy Power Betfair, in a release. “Together with our substantial financial firepower, we believe we are now exceptionally well-placed to target the prospective U.S. sport betting opportunity.”

The Supreme Court ruled last week that a federal law prohibiting most states from allowing sports wagering was unconstitutional. While the ruling will likely lead to sports wagering soon in New Jersey, which had challenged earlier court rulings that led to the Supreme Court case, the expansion of sports wagering to other jurisdictions is likely to hinge on a combination of federal and state legislative efforts.

In the release, Paddy Power Betfair said that the merger will result in “new contests, new content, sports betting offerings, and an enhanced overall user experience.”