DraftKings and FanDuel close to a merger

According to multiple sources, the DFS giants are in serious talks about a possible merger.

US.- It has been reported that DraftKings and FanDuel are closer to a merger than ever before. According to ESPN, the companies would announce the imminent merger later this week, and if carried out they would be taking over the US DFS market.

It is certainly not the first time that rumors about a possible merger are being brought up, but every single time the DFS operators were quick to shut them down. This time, whilst FanDuel hasn’t said anything, DraftKings said that a combination between the two companies would be “interesting to consider,” and that there are still no guarantees that the talks would lead to a final and formal merger.

DraftKings and FanDuel have faced multiple regulatory complications and an union would mean that the two companies would equally share the revenue and expenses in the combined firm. However, a merger would certainly bring a legal hurdle from the Department of Justice and the Federal Trade Commission. In 2010, they said that any potential merger between the companies would “substantially lessen competition, or even create a monopoly.”

Earlier this month, the DFS giants settled an agreement with the State of New York for US$6 million dollars each, ending the legal investigation for seeming false advertising and consumer fraud. Even if they do agree on a merger, the companies would have to consider multiple reforms in order to meet both the regulatory measures and the officials’ demands.