The company said this morning it "confirms it is in discussions, regarding a potential combination of the Group's U.S. business and FanDuel to create a combined business to target the prospective United States sports betting market".
Nearly exactly a year ago, Paddy Power Betfair acquired daily fantasy sports platform Draft in a deal worth around US$50mln. Business Insider also spoke to a source with knowledge of the deal.
Players choose which contest they want to enter, build fantasy sports teams that do not breach a fantasy salary cap, and engage in head-to-head or multi-player contests.
A possible merger with FanDuel is expected to provide Parry Power Betfair with access to literally millions of potential customers on the local sports betting market, with the latter set to become a crowded and highly-competitive one due to a large number of companies having their eyes on the new betting options available.
The US supreme court on Monday struck down a 1992 federal law that barred gambling on individual sporting events in most places.
New Jersey and Pennsylvania have already passed such legislation, and a recent study found that 14 states are likely to have sports gambling within two years, including Montana, Colorado, Michigan, and MA.
FanDuel was part of merger discussion previous year with rival DraftKings but the plan was scrapped in July after a legal challenge by the U.S. Federal Trade Commission. Paddy Power Betfair was formed in 2016 when Paddy Power and Betfair merged.