Daily fantasy sports operators DraftKings and FanDuel are considering a merger, according to multiple media reports.
On Monday, Bloomberg reported that the two DFS operators were in talks about fusing the two companies. While investors in both companies are reportedly pressing for a deal, Bloomberg’s sources offered the standard caveats that there was no assurance that a deal would be reached.
Meanwhile, Reuters reported that the ‘merger’ was more likely to be a case of FanDuel acquiring DraftKings. Regardless of how it’s structured, such a merger would likely raise significant anti-trust issues, given the stranglehold that the two operators have on the US fantasy market.
DraftKings CEO Jason Robins has on multiple occasions publicly stated that a merger would be of benefit to both companies, which have been hard hit by regulatory crackdowns since last fall’s ‘data leak’ scandal brought the DFS industry into the crosshairs of state attorneys’ general.