How DraftKings-FanDuel merger may benefit fantasy players

Marcus Dinitto

How DraftKings-FanDuel merger may benefit fantasy players image

While DraftKings and FanDuel are known mostly for daily fantasy sports games, the company formed by their impending merger is eyeing a larger share of the season-long fantasy sports market, according to multiple reports.

Conversely, websites like Yahoo, ESPN and NFL.com could become bigger players in the DFS space once legal and regulatory issues are worked through, Scott Sher, an attorney for FanDuel, told the Wall Street Journal.

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So while conventional wisdom holds that mergers hinder competition, the Draft Kings/Fan Duel union may actually increase options for fantasy players.

News that the companies were planning to combine broke in June, but a formal announcement was made Friday.

Per the Wall Street Journal, Sher said the joint company’s effort to acquire more season-long fantasy players will help keep pricing competitive and the development of new products moving forward.

While the proposed merger will be scrutinized by regulators, particularly the Federal Trade Commission, they should look favorably on consumers benefiting from enhanced competition, ESPN.com reports.

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Also, DraftKings and FanDuel will work together to figure out regulatory restrictions for fantasy game operators, and that could pave the way for new companies to enter the business.

The merger, pending approval, is expected to close in the second half of 2017. It is not known under which brand the new company will operate, or if both brands will be maintained.

As expected, DraftKings CEO Jason Robins will serve as CEO of the new company, and FanDuel CEO Nigel Eccles will be chairman. The board will be comprised of three directors from each company, and there will be headquarters in both New York and Boston.

Marcus Dinitto