Paddy Power takes punt on fantasy sports operator

Paddy Power Betfair made a bet on the fast-growing US fantasy sports market today, snapping up loss-making operator Draft in a deal worth up to $48 million (£37 million).

The mobile app allows customers to play against each other, betting on the performance of stars across a range of sports including American football, basketball and golf. Players pay an entry fee and the winner scoops the pot.

The US fantasy sports market rocketed to $300 million last year and Paddy intends to pump in significant funds to grow the New York business, which is likely to lose $20 million this year.

The online bookie is paying $19 million up front and up to $29 million more depending on performance.

Draft founders and joint bosses Jeremy Levine and Jordan Fliegel are staying with the company.