BOSTON (AP) – DraftKings and FanDuel are downplaying media reports this week that the two biggest daily fantasy sports companies could team up. But given their swift change of fortune this past year, industry watchers say the timing’s right for a deal.
Media reports say the companies have spoken about a merger, though officials at both DraftKings and FanDuel have dismissed the reports as speculation.
Last fall, the rivals waged a costly advertising war in the run-up to the NFL season as they battled for supremacy in the rapidly growing industry. While the blitz attracted new customers, it also led to more scrutiny from viewers annoyed at ads and lawmakers learning about the new form of gambling.
Both DraftKings and FanDuel – along with other companies in the daily fantasy industry – are fighting for survival as states seek to impose greater regulations or ban their online contests, which involve players picking teams of real life athletes in order to win cash prizes based on how those athletes perform.
“I have to believe these two companies see that continuing to bang heads is wasteful,” says Daniel Etna, a sports lawyer in New York. “They have to see it makes sense to have less competitive pressure and consolidate, rather than go at it alone.”