FanDuel and DraftKings to Merge in 2017
After much speculation, the news formally broke today of a FanDuel DraftKings merger that will combine the two daily fantasy sports giants into one DFS powerhouse!
Most in the DFS industry expected this move would eventually be made by the two biggest names in daily fantasy sports, but on Friday the move became official for FanDuel and DraftKings as they announced their plans to formally merge in 2017.
As DraftKings noted in an official consumer Q&A document posted on their website today:
“DraftKings and FanDuel are merging to create a stronger entity that can focus on growing the fantasy sports market by developing new products and features, delivering enhanced user experiences and creating an overall stronger fantasy sports community, all aimed at creating a more diverse, exciting and appealing experience for fantasy sports players and sports fans generally.
By combining and streamlining resources, FanDuel and DraftKings can work more efficiently and economically with state government officials to develop a standard regulatory framework for the industry. This will not only enhance the long-term growth prospects and improve sustainability for the combined company, but also make it easier for other players to enter and thrive in the market.”
For now, daily fantasy enthusiasts will not see any change to their daily routine on FanDuel and DraftKings as the companies have noted that current NFL, NBA and NHL seasons will remain unchanged on their current platforms and the changes will be made for future seasons.
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It will be very interesting to see which pricing structures are utilized as the companies merge as the game theory can vary significantly depending on site but overall this move should be a positive one for the DFS industry.
As noted in the Wall Street Journal today, this move should allow for significant business synergies as the two platforms are combined and should allow the two companies to significantly reduce the $500 million they spent on aggressive advertising last year while competing against each other.
The move should also allow the two companies to take a unified stance as they continue to battle regulations and legal issues across the U.S. “The sites decided that the solution was to merge their legal and regulatory efforts to save costs and get on the same page with their strategy going forward, according to Scott Sher, an attorney for FanDuel.”
It will be very interesting to see how the platforms are changed as the merger moves forward but daily fantasy sports fans should be excited for the future of the industry with this move by FanDuel & DraftKings!
For now Fantasy CPR will continue to cover FanDuel and DraftKings daily fantasy sports as we always have for our readers and will work to bring you more news on the impact of the merger as they become available!