The two biggest operators in the Daily Fantasy Sports industry have decided to merge. The companies are expected to finalize this deal in the second half of next year, as both of them will likely continue to work under their brand names until the entire process is completed.
The terms of the merger are not yet disclosed. However, it was confirmed that the CEO of DraftKings Jason Robins would be the new Chief Executive of Operations of the new entity, while FanDuel’s current CEO Nigel Eccles will be the new chairman of the board.
The announcement was initially reported in the New York Times after it became obvious that the companies are having some financial issues after their attempts to make daily fantasy sports legal in some States, as well as after a court settlement for false advertisement.
A statement on the DraftKings’ site stated that by combining their resources Fanduel and Draftkings could start working more economically and efficiently with the officials of the state government to develop a standard framework of regulations for the entire industry.
Jason Robins said that both of the companies have always been passionate about offering and providing the best experience for their customers. He continued saying that this merger will help the organizations advance in their goals of building a global sports entertainment platform.
Nigel Eccles continued stating that the fact that they will be able to combine Fanduel and DraftKings presents an incredible opportunity for the companies to continue disrupting and innovating the sports industry.