Fanduel pulls back from UK market after merger halted

UK customers told they can’t bet on games this year Move comes after Draftkings tie-up talks ended

Fantasy sports betting firm Fanduel has withdrawn from operating in the UK market less than a year after a high profile launch,

The company, which earlier this month announced talks over a merger with rival Draftkings had been called off, said the move came as it looks to ramp up its product in its main US market.

In a statement the New Yorkheadquartered company, which was founded in Edinburgh where it still has offices as well as in Glasgow, said: “As we approach the NFL season, we are allocating all of our resources towards ramping up a US product that consumers love and building out complementary fantasy sports products.

“There are over 53 million people playing fantasy sports in the United States and we are investing all of our resources on that market.”

Fanduel launched in the UK market in August 2016 and focused on the English Premier League after striking a partnership deal with sports data provider Opta.

In an email to customers this week, the company said its 2016/17 season in the UK had been “a debut to remember” and that almost £1 million was won by Uk-based fantasy football enthusiasts.

Funds held in customer accounts have been credited back to their bank accounts, It is not known if the decision will have an impact on the company’s operations in Edinburgh and Glasgow.

Earlier this month, Fanduel called an abrupt hold to a proposed merger with fellow market leader Draftkings.

The company first agreed to a deal with its main competitor late last year.

However, as the two combined represented an almost 90 per cent share of the fantasy sports market, they were subject to federal investigations over competition concerns.

Fantasy competition in the US works by picking a number of players from selected teams within a budget and gauging their overall performance across a game, or series of games, to determine a winner.

It is far more popular stateside due to the restrictions on sports betting in America, with many considering fantasy sports which offer cash prices to be a loophole round the strict anti-gambling laws.

A statement released by Fanduel chief executive Nigel Eccles at the time of the merger call-off said: “There is still enormous, untapped market opportunity for Fanduel, and we will continue to execute our strategy to grow our business and further expand the fantasy sports industry.”

businessdesk@scotsman.com