Reports: DraftKings, FanDuel talk merger
DraftKings and FanDuel, the two fantasy sports companies that exploded into the spotlight last fall amid legal and regulatory issues, are talking about a merger, according to a report from Bloomberg. Reuters is also reporting the discussions.
DraftKings, which was founded in Boston in 2012 and keeps its headquarters in the Financial District, and New York-based FanDuel offer very similar services. They are the dominant players in the daily fantasy category, which allows users to win money based on the performance of real-life athletes in one night’s or week’s worth of games. Traditional fantasy sports, by contrast, usually run for a full season.
The Bloomberg report cites anonymous sources and says investors have pushed for the merger. “No final transaction has been agreed, and the deal may still fall apart,” the report reads. The Reuters report is also sourced anonymously.
A merger between the companies has been a point of speculation in the past. Fortune and Legal Sports Report, a blog that closely follows the fantasy industry, have pointed out that a merger of the two market leaders could ultimately stoke antitrust concerns.
Related Links
-
Local News
DraftKings quietly rolls out addictive gambling prevention option
-
Local News
Boston’s other fantasy sports company quickly left New York
-
Business
Companies at center of fantasy sports turmoil have big ambitions
-
Local News
Why DraftKings might not want to copy Uber’s lobbying efforts
-
Business
Here are some FCC complaints about all those DraftKings ads
“We get these questions every six months,” said FanDuel spokeswoman Justine Sacco. “It’s total speculation, we’re not commenting on this.”
DraftKings declined to comment.
Though they have been rivals in the marketplace, DraftKings and FanDuel have been allies in front of state legislatures and attorneys general across the country.
Amid a massive advertising blitz, the companies last fall faced serious scrutiny over two separate concerns: whether they amounted to illegal gambling operations and whether the companies had proper safeguards to protect their integrity.
Since, several states — including Massachusetts — have rolled out regulations or passed laws meant to address these concerns, while the companies have been left fighting for the right to operate in others. The companies most famously shut down in New York amid pressure from the state’s attorney general, but a bill that would allow the games in the state could pass soon.
As of last fall, DraftKings employed about 200, with most of them in Boston. It counts Major League Baseball, Major League Soccer, the National Hockey League, and the Kraft family among its investors.
To comment, please create a screen name in your profile
To comment, please verify your email address
Conversation
This discussion has ended. Please join elsewhere on Boston.com