Paddy Power Betfair has entered into the daily fantasy sports market in the United States with the acquisition of an early-stage operator, DRAFT.

The initial cash consideration paid on completion was $19m. Further cash consideration of up to $29m would become payable over the next four years depending on the business’ performance.

It said the business would continue to be run by co-CEOs Jeremy Levine and Jordan Fliegel and would now have access to the group’s marketing and technology capabilities.

The acquisition was said to provide the group with exposure to a “fast-growing” market, and complemented its other businesses in the United States.

DRAFT was mobile-led, with a differentiated product.

To maximise the growth opportunity, substantial marketing investment in the business is envisaged in the next few years, with an EBITDA loss of about $20m forecast in 2017.

Last week Paddy Power Betfair announced a growth in operating profit of 114 per cent in the first three months of 2017 while revenues for the same quarter rose to £82 million (€97m).