Business News

Paddy Power Betfair's US subsidiary has agreed a deal to offer sports betting at racetracks in New York and New Jersey.

The agreement will see Betfair US launch online, mobile and retail sports betting at Meadowlands Sports Complex in New Jersey and the Tioga Downs Racetrack in upstate New York.

The company will provide a full suite of sports betting products to customers in each state, subject to relevant legislation and licencing.

The tracks are owned by real estate developer Jeff Gural and are ideally placed to attract sports betting customers, with Meadowlands in East Rutherford, New Jersey, less than ten miles from Times Square in Manhattan, and in one of the most densely-populated areas of the US.

Tioga Downs recently opened one of New York State's four commercial casino facilities, featuring a hotel and entertainment centre alongside the casino and racetrack.

"We could not be more excited to partner with Jeff Gural and his partners for sports betting in New Jersey and New York," Betfair US chief executive Kip Levin said.

Meadowlands Racetrack has the potential to be among the best, if not the best, sports betting venues in the US.

"Combining these premier facilities with the global sports betting prowess of Paddy Power Betfair is a great match and will enable us to bring an unparalleled sports betting experience to customers in the northeast."

Gural added: "Sports betting is a great opportunity for Meadowlands and Tioga Downs. We went through a diligent process and reviewed several options to provide customers with the best sports betting experience possible.

"In the end, Betfair's world leading products and experience proved the best choice," he explained. "We are eager to get started with our partners, with whom we have had a long relationship for racing with TVG, on this exciting venture."

The partnership further strengthens Betfair US as it prepares for regulated sports betting in the country and merges operations with daily fantasy sports operator FanDuel following its acquisition. The transaction is expected to complete in Q3 2018, subject to customary closing conditions and regulatory approval.

Shares in Paddy Power Betfair plc (LSE:PPB) closed in London Thursday, prior to the announcement, down 2.32 per cent at 8,645.00 pence per share.