Photographs of James Packer and singer Mariah Carey in Capri appear to confirm speculation the pair are dating.

The story about billionaire Packer and Carey broke when celebrity gossip website TMZ posted a photo of them smiling and holding hands. It’s said the pic was taken in Capri yesterday.

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 The website says the couple are staying on the gambling mogul’s yacht and are enjoying an “extended vacation”.

Packer and Carey have been friends for years but sources say they are now in a relationship and sailing around the Mediterranean on Packer’s yacht. It’s understood they are bound for Cannes and St Tropez.

Carey is the Packer’s first public girlfriend since his shock split with model Erica Baxter in 2013.