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DraftKings, FanDuel Merger: Fantasy Sites Agree One Is Better Than Two

DraftKings, FanDuel Merger: Fantasy Sites Agree One Is Better Than Two

DraftKings and FanDuel have agreed to a merger. (Photos: Scott Olson/Getty Images)

By    |   Friday, 18 November 2016 02:16 PM EST

Daily fantasy sports operations DraftKings and FanDuel are planning a merger after both found themselves in troubled waters this year as their values took a major hit due to legal troubles.

The merger has not been finalized yet and still must be approved by regulators, which is expected to take some time. The companies expect the deal to be confirmed by the second half of 2017, according to The New York Times.

“Joining forces will allow us to truly realize the potential of our vision, and as a combined company we will be able to accelerate the pace of innovation and bring a richer experience to our customers than we ever could have done separately,” Jason Robins, chief executive of DraftKings, said in a statement.

In 2015, New York state Attorney General Eric Schneiderman ordered DraftKings and FanDuel to stop taking bets from New York residents after the two then-powerhouse companies were accused of illegal gambling under New York law.

“It is clear that DraftKings and FanDuel are the leaders of a massive, multibillion-dollar scheme intended to evade the law and fleece sports fans across the country,” Schneiderman said in 2015, the Times reported. “Today we have sent a clear message: not in New York, and not on my watch.”

Despite this noise, there were many who said fantasy sports betting is legal.

In 2006, the federal government passed the Unlawful Internet Gambling Enforcement Act, which states fantasy sports is nothing more than a “game of skill,” not a “game of chance,” Business Insider noted. Under the law, fantasy sports games are said to have “an outcome that is determined predominantly by accumulated statistical results of sporting events, including any non-participant’s individual performances in such sports events.”

DraftKings and FanDuel say their merger should reduce costs for their users and help the companies create a better product together, one that will offer more variety when it comes to contests, loyalty programs, and better website features, said the New York Post.

“Being able to combine Draftkings and FanDuel presents a tremendous opportunity for us to further innovate and disrupt the sports industry,” FanDuel CEO Nigel Eccles added to Robins' statement.

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TheWire
Daily fantasy sports operations DraftKings and FanDuel are planning a merger after both found themselves in troubled waters this year as their values took a major hit due to legal troubles.
draftkings, fanduel, merger, fantasy, sites
364
2016-16-18
Friday, 18 November 2016 02:16 PM
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