FanDuel, DraftKings Merger Off

The proposed merger between FanDuel and DraftKings is now off. That’s not a big surprise after the Federal Trade Commission said it would try to block a merger. The FTC believes there would be a monopoly on Daily Fantasy Sports if the two merged. The big question is what’s next for both companies.

The CEOs of the two DFS giants issued statements.

“Over the past few years, DraftKings has become the world’s leading fantasy sports company,” CEO Jason Robins said. “Consequently, we believe it is in the best interests of our customers, employees, and investors to terminate our agreement to merge with FanDuel and move forward as a separate company. This will allow us to singularly focus on our mission of providing the most innovative and engaging interactive sports experience imaginable, forever changing the way fans connect with teams and athletes worldwide. We appreciate the continued loyalty of our players – it is you, our customers who have made this all possible – and we look forward to kicking off what is going to be our best NFL season yet!”

DraftKings also sent a letter to customers telling them the merger was off.

“Today we formally terminated our merger with FanDuel and will withdraw litigation from the Federal Trade Commission (FTC). DraftKings remains the preeminent platform in the daily fantasy sports industry. As a result, we are well-positioned to serve as a global hub linking fans to the sports, teams, players and game content they love.”

FanDuel CEO Nigel Eccles issued similar words.

Both sites will gear up for football. Like a sportsbook, half its annual profit comes during football season. While the two will be rivals again, they will also work together on lobbying. The two joined forces at times when DFS laws were being heard. And it will likely happen again.