Wagering and DFS operator FanDuel has picked Scientific Games to power its sports betting and online casino operations in the US amid nationwide rush toward legalized sports betting, according to sources familiar with the matter.
FanDuel’s sports betting operations are currently supported by GAN’s back-end platform and IGT’s sportsbook technology.
The market responded accordingly to news about a potential partnership between the two companies, sending Scientific Games shares up more than 8%.
Sources have told Bloomberg that under the terms of a potential deal between FanDuel and Scientific Games, the latter company would provide a sportsbook platform for the sports betting operator in the states where it already takes wagers as well as in ones that are yet to join the US legal athletic gambling stampede.
Sports betting has surged across the nation after the US Supreme Court struck down a long-standing federal ban on the practice in May 2018. FanDuel, which started out as a daily fantasy sports operator, quickly jumped on the wagering bandwagon and took the early lead in key markets, including New Jersey and Pennsylvania.
Despite its leadership, FanDuel’s sportsbook has experienced some technical issues during major sports events in recent months, which could have prompted the operator to start looking for a technology partner with a more sophisticated platform.
Scientific Games Deal Might Not Be Imminent
According to separate reports, a deal between FanDuel and Scientific Games might not be imminent, even though the two companies have recently engaged in talks over a potential partnership.
However, it is understood that FanDuel has held similar discussions with other sports betting technology providers in recent months.
Scientific Games powers sports betting operations via its OpenBet platform, which it added to its existing offering in early 2018.
The Las Vegas-headquartered B2B services and solutions provider announced the acquisition of NYX Gaming in the fall of 2017 and closed the $631 million transaction in January 2018. The deal included all NYX Gaming-owned technology solutions, with the OpenBet platform being among them.
Scientific Games could not have chosen better timing to boost its sports betting technology offering as the US Supreme Court authorized states to legalize athletic gambling, if they felt inclined to do so, just several months after the acquisition of NYX Gaming.
FanDuel’s owner, Flutter Entertainment, has been using some OpenBet technology across its Paddy Power and Betfair brands in Europe.
Aside from looking for ways to maintain its sports betting leadership, FanDuel has also been looking to capitalize on the growing popularity of online casino-style gaming in an increasing number of US states.
Last month, the operator launched its first FanDuel Casino app in Pennsylvania, where first legal online casino operations went live this past summer. The FanDuel Casino app currently has limited offering with about a dozen slots and table games, but the operator is set to add more titles in the coming weeks and months.
Source: FanDuel Picks Scientific Games for Sports Betting Tech
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