Fantasy sites bet on merger

DRAFTKINGS and FanDuel, two daily fantasy sports giants that control at least 90% of the market, are reportedly set to merge and form a super company. DrafKings co-founder Jason Robins is expected to be chief executive officer, according to Bloomberg, which first reported the two companies were discussing a potential merger in June.

There’s still a possibility, however, that an outside executive could be put in charge, Bloomberg said.

FanDuel co-founder Nigel Eccles will reportedly be chairman of the board, which will be comprised of an even numer of members from DraftKings and FanDuel. Neither company would comment on the story to Bloomberg.

The rival companies, which have been competing against one another the last few years, will now have a virtual monopoly on the Daily Fantasy Sports industry. It makes sense for DraftKings and FanDuel, which have reportedly struggled financially in 2016, to combine resources rather than have each spend on advertising while competing for the same customers.

DraftKings and FanDuel have spent time and money this year trying to ensure their businesses are deemed legal in each state; they were forced to shut down in New York after Attorney General Eric Schneiderman sued both for violating the state’s constitutional ban on certain types of gambling, but they began operating again in August. Last week DraftKings and FanDuel took another hit, each agreeing to pay $6 million to settle lawsuits with Schneiderman over deceptive fantasy sports advertisements.