Paddy Power-Betfair confirms it is talking with fantasy site FanDuel about possible merger

Paddy Power-Betfair, the company that owns and operates TVG and an exchange-wagering system in New Jersey, confirmed on Wednesday that it is in talks with FanDuel, a daily fantasy sports operator, on a potential merger.

In a statement following reports in the financial press about the talks, 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.”

Paddy Power-Betfair confirmed the talks two days after the U.S. Supreme Court struck down a 1992 federal law prohibiting states from authorizing sports wagering. Since the ruling was released, gambling stocks have surged amid speculation that the ruling could lead to a rapid and widespread expansion of sports wagering in the U.S., despite significant uncertainties that could delay and disrupt the process.

The Supreme Court ruling did make sports wagering legal in New Jersey, which already had laws and regulations on the books authorizing the practice. New Jersey had challenged lower courts’ rulings that the state could not authorize sports wagering, leading to the Supreme Court case.

Officials for Paddy Power-Betfair have said in the past month that they planned to launch a sports-betting channel if the Supreme Court ruled in favor of New Jersey. Last year, the company bought a daily fantasy company, Draft.com, that has a far smaller footprint than either FanDuel or DraftKings, the two dominant players in the market.

Under New Jersey’s sports-betting laws, only casinos and racetracks will be able to take bets on sports. Monmouth Park has said that it plans to open its sports book on May 28.