Paddy Power Betfair in talks to purchase FanDuel

British bookmaking giant Paddy Power Betfair (PPB) has confirmed talks over a merger in the US with fantasy sports site FanDuel.

Talks centre around combining its US operation with FanDuel to create a business “to target the prospective US sports betting market”.

It comes in the aftermath of the US Supreme Court’s overturning of PASPA, effectively opening the door to sports betting at a federal level.

FanDuel allows sports fans to gamble on fantasy sports leagues and contests.

PPB confirmed the talks in a statement: “Paddy Power Betfair plc (“the Group”) notes the media speculation, and confirms it is in discussions regarding a potential combination of the Group’s US business and FanDuel to create a combined business to target the prospective US sports betting market.

“Discussions are ongoing and there is no certainty as to whether agreement will be reached, or as to the terms or timing of any transaction. A further announcement will be made as appropriate.”

Paddy Power Betfair currently operates an online casino in New Jersey and the FanDuel swoop follows on from last year’s US$48m acquisition of daily fantasy sports site Draft.

Earlier this month, the company announced the return of £500 million in cash to shareholders after first-quarter results showed a dip in revenues.