You might have heard about some massive news in the world of DFS that came about lately: the proposed merger of FanDuel and DraftKings. These two behemoths have been slogging it out in the DFS ring since they both came onto the scene in 2009 and 2012 respectively. Since then, it has looked as if DraftKings was taking the lead in the battle for DFS dominance—its new signups far outweighed those of FanDuel.
Yet, the financial figures tell a different story. In spite of DraftKings’s dominance, and its seeming ubiquity in the US, the company has actually lost huge amounts of money over the past few years. This could be a possible explanation for the merger between the two companies. But what would a merger mean for UK players, and which company would come out on top? Will it even go ahead? We’ve got your DFS fix at DailyFantasyUK.
Little is known about the actual logistics of the FanDuel and DraftKings merger. All that has been said by the CEOs of the companies about the deal is that it would be a merger of equals, which is assumed to be a reference to the valuations of both companies (around $12bn).
We don’t know what would happen to the individual brands, but can only assume that each website would carry on functioning as normal—at least for the time being. It’s unlikely that you’ll be playing on ‘FanKings’, or ‘DraftDuel’ any time soon!
Timeline of the merger
So, when did this all come about? Well, the initial plans for the merger were set out in late 2016. During the months that ensued, things seemed to be progressing normally.
What lies ahead for the merger?
The FTC (Federal Trade Commission) has made steps in order to block the merger between FanDuel and DraftKings. This is because of anti-competition laws: basically, the FTC believes that a merger might lead to the companies having a monopoly on the DFS market. It’s very unlikely that the two sites will merge before the upcoming football season.
Unfortunately, we’re going to have to wait until September to find out the final verdict on this case. Keep checking DailyFantasyUK—we’ll keep you posted!
What do you think of this merger—do you think it would be a good thing or a bad thing for UK DFS players? Let us know in the comments section below.