DraftKings, FanDuel agree to merge

Picture courtesy: fantasyfootballinsiders.com

As rumored before, the two leading daily fantasy sports (DFS) companies, DraftKings and FanDuel, have now agreed to merge after a turbulent year.

The merger must be approved by regulators and will take time — the companies said they expected the deal to close in the second half of 2017. Until then, both sides will operate under their own brands.

The merger comes shortly after the two companies were ordered each to pay $6 million over deceptive advertising claims. According to the New York Times, lobbying and legal costs had damaged both companies’ bottom lines to the extent that representatives of the companies last month "asked the New York attorney general’s office to allow them to pay a combined $12 million settlement in installments".

"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," DraftKings CEO Jason Robins said in a statement.

The companies agreed that Robins will be CEO of the new company and FanDuel CEO Nigel Eccles will be chairman.