FanDuel raises £19m to cover operating costs
FanDuel has raised £19m of debt to fund its short-term operating costs while it awaits completion of its takeover by Paddy Power Betfair.
And its directors have warned that further funding will be needed if the deal does not go through.
Paddy Power Betfair announced that it had struck a “definitive” agreement to buy FanDuel, which pioneered daily play in the US fantasy sports market, on May 23. It would own 61% of the combined business on completion of the deal, with FanDuel investors holding 39%.
The accounts show the firm, founded by Nigel Eccles, Lesley Eccles, Tom Griffiths, Rob Jones and Chris Stafford in 2009, made an operating loss of $75.7m.
The company said losses continued to be made in 2017 because of lower than expected revenue, costs linked to its scrapped merger with US rival firm DraftKings, and continued investment in products and customer acquisition and retention.
