Irish bookie Paddy Power Betfair plc has confirmed it is in discussions to merge its US operations with fantasy sports company FanDuel.

“Paddy Power Betfair plc 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,” said Paddy Power Betfair in a stock exchange statement.

“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.”

Analysts at Davy Stockbrokers wrote: “For both sides, a deal would make a huge amount of sense strategically and on the face of it, an amalgamated business would represent a powerful combination in the US sports betting market.”