DraftKings and FanDuel Merger under Fire – New Zealand 2017
DraftKings and FanDuel are two of the biggest names in Daily Fantasy Sports (DFS) operators, mostly in America. The two firms have been in competition for years, though they have now proposed a merger. However, this move has been opposed by DFS regulators and attorney generals across the USA. This is because the DFS industry is too similar to gambling, according to many of the states opposing their presence.
DraftKings and FanDuel – Legal Problems
The move by many American states to file lawsuits against the two DFS operators has cost them millions. More so, they have pulled their business from ten states to avoid further lawsuits and legal problems. The proposed merger is expected to save both operators substantial legal costs. However, the case has come before the Federal Trade Commission (FTC).
As two entities, the DraftKings and FanDuel have created competition in the DFS industry. Their proposed merger, on the other hand, may cause a monopoly in the multi-billion dollar industry. This goes against FTC policies, as the two DFS operators cater to 95% of the players in America. The merger is supposed to take place after the National Football League (NFL) season ends.
Fantasy Sports offered by DraftKings and FanDuel
So, you’re probably wondering what fantasy sports are and why they’re such a big deal. By definition, fantasy sports involve bettors creating18 virtual ‘teams’ using real players. These teams will then compete according to statistical performance by the players selected. One of the most popular types of fantasy sports is Fantasy (American) Football.
DraftKings and FanDuel – Outcome
Due to the involvement of the FTC, DraftKings and FanDuel have decided to drop their merger. Further regulation of the DFS industry will come from gaming regulators across the USA, which are calling for a DFS entity. Additionally, DFS may fall under gambling laws, as some players have placed wagers on the fantasy games. It’s unclear at the moment whether or not these changes will happen.
For Kiwi players, there are no regulated fantasy sports books at the moment. However, there are many online sports betting sites with great bonuses and sports bets. So, watch this space for all your latest gambling news and more.