Paddy Power Betfair (LON:PPB) began the first part of their planned £500 million share buy back on Tuesday, in a move designed to reduce the company’s share capital.

The decision was announced by the gambling company earlier this month, with Paddy Power Betfair confirming on Tuesday that its agreement with broker Goldman Sachs to purchase up to £200 million shares on its behalf would begin today. It will continue for the next three months.

The share buyback comes just a week after the betting company agreed a merger with US fantasy sports betting site Fan Duel.

The group is hoping to make bigger moves into the US market, after US laws on sports betting were relaxed earlier this month.

As part of the agreement, Paddy Power Betfair will take a 61 percent stake in the combined business, with existing Fan Duel investors continuing to own 39 percent.

The Dublin-based company will control the business, which will become a subsidiary.

Shares in Paddy Power Betfair are currently trading up 0.44 percent at 9,120.00 (0925GMT).