Rival daily fantasy sports (DFS) companies FanDuel and DraftKings announced today that they have decided to merge, putting an end to a corporate rivalry that has lasted since DraftKings launched in 2012.The merger would allow the companies to consolidate costs and pool resources to better battle regulators who have ruled the sites as an illegal form of gambling. Over the past year and a half, both companies have encountered setbacks, as the multi-billion-dollar DFS industry's legality was called into question by multiple state Attorneys General, and outright banned in some states. According to ESPN's DFS legalization tracker, daily fantasy has been recently contested in ten states, and lawmakers have introduced legislation in 13 others.We're excited to announce that DraftKings and FanDuel have reached a merger agreement! Read more: https://t.co/KmG1DjJLOd pic.twitter.com/50jDDu3EBK
— DraftKings (@DraftKings) November 18, 2016
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The merger still requires federal approval, but the companies have projected that the deal will be finalized in 2017. Robbins is set to take over as chief executive of the new company, expected to have headquarters in both Boston and New York.The merger by DraftKings and FanDuel is a sad reality to some of their biggest investors who banked on 1 of them being a winner.
— Darren Rovell (@darrenrovell) November 18, 2016