Online Fantasy Sports Games

Legal Gambling


DraftKings and FanDuel are merging into one company


Months of speculation and rumors have finally mounted, and the deal between DraftKings and FanDuel has reached full fruition. The two companies will merge into one, and the move has been labeled a "strategic merger of equals." While they have not announced how the company will structure their combined organization, the CEO of DraftKings, Jason Robins, will become the new CEO of the merged company. Meanwhile, Nigel Eccles, the CEO of FanDuel, will become a Chairman of the Board. 

Where the Transition Becomes Interesting

Both of the brands plan to continue operation on separate sites into the foreseeable future, which eliminates the question of what the new name of the company would have been. Neither FanDuel nor DraftKings desired a departure from their brand, and the dual-operational structure could be compared to Seamless or GrubHub with their post-merger. The two companies have transformed into one, but each maintained their respective platforms because a lot of the customers have a strong brand loyalty, and that is similar to what we have with FanDuel and DraftKings. Most users will pledge die-hard loyalty to either one or the other.

When the Merger Takes Place

While fans of the two companies can expect the merger to occur in 2017, both platforms will stay separate until after the NFL season in 2017. This is because both companies enjoy lucrative profits during this time. Why have the companies chosen to merge? First, when they lobby for legalization combined together, it saves both time and money. They can work better with government officials to develop an agreeable regulatory framework. In the past, both companies spent separately to reach the same goals with explicit legalization across the United States. In addition, it leads to better cost savings in advertising because they can split the costs.

After the merger, the two companies will not be competing for customers, and they can advertise better. The merger will be more cost effective. As a result, you have a giant company able to bring in profits at a much more rapid rate than before, which will also please the investors of both companies. 

>> All legal fantasy sports news in USA

Online Fantasy Sports News in USA

12/21/2018 Texas to Approve Daily Fantasy Sports Legislation?
Back in 2016, Texas Attorney General, Ken Paxton issued an opinion that made clear the state felt as though participation in fantasy sports equated to gambling on athletic performance. Based on prior Texas legislation, that... Read more

Legal Gambling in USA
12/21/2018 Fantasy Sports King Introduces Casino Gambling
With all federal bans against sports betting and online gambling lifted in America, some states are moving quickly to take advantage of every available opportunity. For years, DraftKings has held its spot as the top dai... Read more

03/24/2018 Offers To New Players On Fanduel
Virtually all sports fans have seen an advertisement for Fanduel at some point while watching a game. The company runs commercials constantly during major sporting events. They want to encourage as many players as possible ... Read more

>> All fantasy sports websites news in USA

  Home > Fantasy Sports Games > Online Fantasy Sports News in USA > DraftKings and FanDuel are merging into one company