Paddy Power in talks to tie up with Fanduel

Paddy Power Betfair has confirmed it is in talks to merge its US operation with Fanduel, the fantasy sports firm founded in Edinburgh.

In a brief stock market statement, the bookmaker said discussions were under way 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,” it added.

No financial details of the transaction were given.

The move comes just days after the US relaxed its gambling laws, providing an opening for the likes of William Hill and Paddy Power Betfair.

Fanduel, which is based largely in New York as its main businesses are in America, still maintains a significant presence in Scotland. It is backed by the likes of Kohlberg Kravis Roberts, Google Capital and NBC Sports Ventures.

Fanduel grew to become one of two Scots unicorns, with a $1 billion valuation, alongside Skyscanner.