Daily Fantasy Sports Operators DraftKings and FanDuel Merger

Published Saturday, November 19, 2016 - Online-Casinos.com
Daily Fantasy Sports Operators DraftKings and FanDuel Merger

The rumours were correct when they suggested the online daily fantasy sports world was going to change with the merger of two of the dominant players in the industry coming together. DraftKings and FanDuel have for quite some time been working at building the customer base for a DFS market that is considered to be worth billions of US dollars. Regulatory issues in the USA have been creating a wait and see approach among investors in the online sports betting industry.  The merging of two of the country’s largest operators of daily fantasy sports offerings will give the industry a confidence boost.

The argument that daily fantasy online sports betting is indeed gambling has kept the activity in a legal limbo in some jurisdiction where governments are taking the time to research before hard and fast rules are established. The two firms are regarding this move as a “strategic merger of equals.”  

A press release from the companies commented, “By combining and streamlining resources, DraftKings and FanDuel can accelerate work with government officials to continue to develop a standard regulatory framework,” the release continued to add, “This framework will not only make it easier for the combined entity to thrive in the long-term, but will provide certainty and encourage other companies to make significant investments in the fantasy sports industry.”

The American Gaming Association has been looking to repeal of the 1992 Professional and Amateur Sports Protection Act and it responded to the merger announcement by saying, “DraftKings and FanDuel have sped up the debate on legalizing sports betting by demonstrating its popularity and mainstream nature," the AGA continued,  "Fans have a desire to be invested in games. We’re building on the momentum created by DFS to remove the federal ban on sports betting.”

It was also noted by the new merger information release that the combined efforts of the new firm will “accelerate the pace of innovation”

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