BOOKMAKER Paddy Power Betfair has confirmed it is in talks to buy FanDuel, the daily fantasy sports business that was founded in Edinburgh almost a decade ago.

In an announcement to the London Stock Exchange Paddy Power Betfair confirmed that it is in discussions regarding “a potential combination” of its US business Draft with FanDuel “to create a combined business to target the prospective US sports betting market”.

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The move follows a ruling from the US Supreme Court this week that found that a ban on sports betting in the state of New Jersey is unconstitutional.

The decision is expected to pave the way for significant growth for FanDuel, which has been hampered up to now by many US states saying the games it offers constitute gambling because they are based on chance.

FanDuel, which was last year taken over by a group of private equity investors led by Kohlberg Kravis Roberts, has long argued that its games are based on skill rather than chance but is nevertheless expected to move into the sports betting market in the wake of the New Jersey ruling.

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FanDuel makes money by charging customers an entry fee to play fantasy sports games against rivals. All its customers are based in the US.

Paddy Power Betfair said that “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”.

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FanDuel, which still employs around 140 people in Edinburgh, was founded by a five-strong team led by former chief executive Nigel Eccles.

All five founders left the firm over the past two years.