This morning, daily fantasy sports companies DraftKings and FanDuel announced that they’re joining forces. The companies have nearly indistinguishable product offerings and have raised a total of $1 billion between them. The merger will go through in 2017.
They stand to save oodles of money by joining forces, because, well, they’ll no longer have to compete with each other for marketshare. Of course that’s only if regulators approve of the deal. If it is approved, the companies will have bigger—legalization—battles to tackle than pulling in new customers. In order for daily fantasy sports to pay off, FanDuel and DraftKings will need to make more headway in making sports betting a legitimate practice nationwide. RR