The web of companies in the NJ sports betting space has grown even more entangled, as it was revealed today that the newly-minted FanDuel Group will leverage GAN’s enterprise software to make its online and mobile sportsbook a reality in the Garden State.
The Fanduel Group’s web of partnerships
Ever since the U.S. Supreme Court overturned PASPA, opening the door for individual states to offer sports betting, industry stakeholders have been scrambling, striking partnerships and making acquisitions at breakneck speed. Daily fantasy sports operators, which already had strong brand presences in the country, were eyed as particularly valuable entities, and have been moving fast to position themselves to take advantage of the SCOTUS decision.
FanDuel’s potential value was not lost on Paddy Power Betfair, which agreed to purchase the company in May. Betfair U.S., an international sports betting and online gaming behemoth, runs its own highly successful Internet casino in the Garden State through a partnership with Golden Nugget.
Soon after the purchase, Betfair U.S. announced that it would partner with premier horseracing track The Meadowlands, building out a brick-and-mortar sports wagering pavilion called the FanDuel Sportsbook. In a recent interview with NJ Online Gambling, FanDuel CEO Matt king explained the company’s reasoning behind opting to use the FanDuel name, in lieu of other options. The book took its first wagers on Saturday, one month after the first legal sports bets in the state were placed by Gov. Phil Murphy and former Sen. Raymond Lesniak at the opening of Monmouth Park’s sportsbook.
But what about online betting? This week FanDuel divulged more of its virtual wagering plans, revealing that global iGaming software leader IGT would power its online and mobile sports betting products. IGT will provide risk management and trading services to the company, which will also be integrated into self-serve kiosks at licensed NJ sports betting venues.
GAN, on the other hand, will complete a different aspect of the puzzle. The software developer, which currently provides the online casino platform for Betfair and Ocean Online Casino, will serve as the player account management system. The management system is a crucial aspect of any platform and is highly regulated, due to the fact it handles sensitive customer data and provides player security. GAN is already licensed to operate in the Garden State, and would have been an easy choice for FanDuel execs looking to avoid any regulatory hiccups.
Finally, FanDuel will leverage its exceptional team of graphic designers to produce the front end interface with which customers will interact when placing their bets.
Breaking it all down
Here are all of the known elements of the FanDuel Group in New Jersey:
- Parent company: Paddy Power Betfair
- Land-based partner: The Meadowlands
- Platform provider: IGT
- Player account management: GAN
- Front-end interface design: FanDuel
DraftKings is believed to be the DFS market leader in the U.S., and is FanDuel’s biggest competitor. DraftKings is also looking to cash in on the SCOTUS decision and has already announced it would team up with Resorts to offer sports betting in the state.
However, DraftKings is now reportedly looking to raise capital to compete with giant Paddy Power Betfair, new owner of its chief rival. The company is reportedly looking to raise around $200 million at a $1.5 billion valuation in order to bulk up its operation and better compete in the U.S. sports betting space.
Even so, DraftKings is already making moves. It recently announced a partnership with Lago Resort in Waterloo, New York, should that state legalize sports wagering as well. The deal would give DraftKings a physical, online and mobile sportsbook presence in the area.