Fantasy Sports Firms FanDuel and DraftKings Consent To Merge

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Fantasy sports firms FanDuel and DraftKings consent to combine

18 November 2016

A Scottish tech firm which became a major gamer in the US fantasy sports market is to merge with its greatest competitor.

FanDuel, which was established in Edinburgh in 2009, has actually gone into a merger arrangement with DraftKings.

The deal, which is subject to regulatory approval, is anticipated to close in the 2nd half of next year.

FanDuel has offices in Edinburgh and Glasgow but moved its head office to New York a number of years earlier.

DraftKings has its head office in Boston.

the yohaig code companies provide online dream contests across professional sports in the US, Canada and the UK.

Cost savings

There are an estimated 57 million dream gamers in the US alone.

Both companies have been dealing with regulatory and legal difficulties to their market, with regulators in some US states ruling that fantasy sports firms' activities amounted to prohibited betting.

In a joint declaration on Friday, the companies stated that by combining and streamlining resources they could "accelerate deal with federal government authorities to continue to establish a standard regulatory framework".

They likewise expect the "tactical merger of equals" to bring efficiencies and expense savings and assist the combined business "accelerate its course to profitability".

FanDuel president Nigel Eccles said: "Having the ability to combine DraftKings and FanDuel presents a significant opportunity for us to further innovate and interrupt the sports market.

"While both business have achieved much already, this deal will produce a service that can provide a higher range of offerings, appealing to brand-new users, consisting of the tens of millions of season-long fantasy gamers that haven't yet attempted our products."