FanDuel and DraftKings in Merger Talks

Written by:
Guest
Published on:
Jun/13/2016

The two largest daily fantasy sports companies, FanDuel Inc. and DraftKings Inc., are in early-stage talks to merge, people familiar with the matter said on Monday, as the industry faces a crackdown by U.S. states over whether it runs illegal gambling.

Ad: Open an Online Betting Account Today at Gambling911 Endorsed AceSportsbook.  Receive Hundreds of Dollars in Signup Bonuses Here

The two sources said that no deal is certain and asked not to be identified because the negotiations are confidential. FanDuel declined to comment. DraftKings did not immediately respond to a request for comment.

The multibillion-dollar fantasy sports industry has drawn increased attention since last year, with the attorneys general of several states including New York, Illinois and Nevada questioning the legality of the games.

A deal could reduce legal costs for the two firms, which have had to defend themselves against the legal challenges as well as lobby for legislation to make the games legal in states that have declared them illegal gambling.

It could also lower their advertising budgets. The companies have spent aggressively against each other in the past few years as they battled for market share. For instance, Bernstein research estimated that 59 percent of total U.S. television ad revenue growth in the third quarter of last year was from spending on daily fantasy football ads.

FanDuel and DraftKings agreed in March to halt their business in New York, betting on a legislative path to make the games legal after a months-long fight with the state’s attorney general, Eric Schneiderman.

The state’s Senate and Assembly are both considering bills on the games, but have yet to pass final legislation.

Fantasy sports, which started in 1980 and has surged in popularity online, allows participants to create fictional teams of athletes from professional sports leagues. The better a chosen athlete performs in real life, the better the player’s fantasy team does.

Daily fantasy sports, a turbocharged version of the season-long game, has exploded in popularity over the past decade. Players draft teams in games played in just one evening or over a weekend.

Bloomberg News first reported on the merger talks between FanDuel and DraftKings.

Gambling News

Ladbrokes on Hot Seat After Imposing £800 'Dormancy' Fees

Ladbrokes on Hot Seat After Imposing £800 'Dormancy' Fees

A punter claims he has been waiting since 2014 to be paid by Ladbrokes and now they are trying to tack on a "dormancy" fee totalling £800.

Vegas Gambling Revenue Hits All Time Low

Generating $26 billion in total revenue, Nevada gaming regulators say it is a new record low for Vegas.

ThePOGG releases Affiliate Program Value Report 2017

ThePOGG.com is proud to announce their affiliate program value report for 2017. The purpose of the report is to share with the webmaster community and gain an insight as to which affiliate programs perform the best and ones that are below average.

One Dead After Casino Boat Goes Up in Flames

One Dead After Casino Shuttle Boat Goes Up in Flames: 50 Passengers Forced to Jump

A casino company said Monday it never had a problem with the shuttle boat that erupted in flames off Florida’s Gulf Coast, leading to the death of a female passenger.

Two Men Plead Guilty in Case Involving Wiretapping of Poker Pro's Phones

Two Men Plead Guilty in Case Involving Wiretapping of Poker Pro's Phones

Two man charged with running online sports betting ring and operating illegal poker games

Syndicate