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Betting firm Paddy Power anticipates another €240m to be added to its earnings by 2023, a result of its foray into the U.S. market.
Paddy Power-Betfair already had a presence in the U.S. market via its TVG online horseracing outlet even before the Supreme Court ruled to allow sports betting back in May.
Purchasing FanDuel has allowed the company to dive head first into the new sports betting landscape, which for now only involves a handful of states. It operates the FanDuel sportsbook at the Meadowlands stadium just a few miles west of New York City.
From the Irish Examiner:
In an in-depth research note on the betting and gaming services group’s US prospects, the stockbroking firm suggested that US sports betting activity could add between £120m (€135m) and £215m (€241m) to annual earnings, on an Ebitda basis, in the medium-term.
“Our proprietary model confirms that the US sports betting opportunity is extremely significant for Paddy Power-Betfair,” said Davy analyst Michael Mitchell in the report.
Davy said that prior to the betting group turning a profit in the US, its losses will likely “trough” in 2020 at around £150m. Paddy Power-Betfair’s US sports betting business is expected to make a loss of around £25m this year.
FanDuel offers online betting throughout the state of New Jersey. FanDuel will also be powering the sportsbook at the Greenbrier Resort in West Virginia as well as the Valley Forge Casino in Pennsylvania.
- Aaron Goldstein, Gambling911.com
