The two companies are considering a merger, likely to cut back on the expense of competing with each other and to join forces in taking on the legal issues they’re both dealing with. FanDuel and DraftKings have seen their valuations take a big hit in the past year, following allegations by regulators that their games are equivalent to illegal gambling.
As Fast Company wrote recently, CEO Nigel Eccles believes FanDuel has been “twisted and mischaracterized,” but he also sees why the industry needs regulation. From the story:
FanDuel has a “good moral compass,” [Eccles] says—nothing like the unscrupulous gambling ring you’ve read about in the news. “The game is an evolution of seasonal fantasy sports, which has been considered legal for 50 years,” he says. At the same time, he adds, “It shouldn’t be a nonregulated free-for-all. There is no multibillion-dollar unregulated industry; we needed to become regulated.”