DraftKings and FanDuel Announces Merger
DraftKings, the Boston-based online Daily Fantasy Sport (DFS) provider and FanDuel, their New York rival, the two largest operators of DFS have agreed to a merger of their business operations.
The merger is expected to be finalised in the second half of 2017 and if approved this deal would create a DFS giant that would control a whopping 80% of the US market. No new corporate name has been agreed upon as yet and the two companies will continue to operate under their respective names until the merger is finalised.
The two companies have been engaged in massive legal battles across the USA in a bid to see DFS legalised in certain states suffering cash flow problems due to these legal fights while still expecting to face roadblocks along the way. Seeing that both companies are fighting the same legal battle in almost every US state, the savings they will experience in legal expenses along makes a huge advocate in justifying the merger.
A statement from CEO Jason Robbins reads: “By combining and streamlining resources, FanDuel and DraftKings can work more efficiently and economically with state government officials to develop a standard regulatory framework for the industry.”
Robins continued: “We have always been passionate about providing the best possible experience for our customers and this merger will help advance our goal of building a transformational global sports entertainment platform.
Joining forces will allow us to truly realise 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.”
FanDuel’s Nigel Eccles commented: “Being able to combine DraftKings and FanDuel presents a tremendous opportunity for us to further innovate and disrupt the sports industry.
“While both companies have accomplished much already, this transaction will create a business that can offer a greater variety of offerings, appealing to new users, including the tens of millions of season-long fantasy players that haven’t yet tried our products.”
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