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DraftKings and FanDuel in Merger Talks, According to Reports
By: The Drum
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The two largest daily fantasy sports companies, DraftKings and FanDuel, according to Bloomberg, are in discussions about a possible merger. Both have been embroiled in controversy as 10 states have blocked both from operating. Legal challenges aside, the two have been pushed, for some time, to get together by investors as both offer essentially the same product but spend tremendous amounts of money to compete. 

“As a business proposition, it makes sense,” Daniel Wallach, a partner at the firm Becker & Poliakoff, told USA Today. “These two were bitter adversaries a year ago with all their advertising as they vied to be the number one fantasy site. Fast forward one year and their agendas are perfectly aligned. Each face identical challenges in each state and they’re pouring millions of dollars into legal and lobbying fees. It makes too much sense to at least consider a merger.”

Both are facing regulatory issues in the US, with several states (most prominently, New York state) deciding that they are engaged in illegal gambling. New York is expected to put new regulations for the games into place, which would allow residents in the state to take part again. New York attorney general Eric Schneiderman has been highly vocal and public about regulation, and both FanDuel and DraftKings barred residents from playing since March.

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About the Author
This article was published by The Drum. A link to the original appears at the end of this post. www.thedrum.com
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