Daily fantasy sports companies, Draftkings and FanDuel, have agreed a merger following the companies’ $12m settlement over false advertising claims with the New York attorney general last month.
The merger, although agreed, must be approved by regulators and both companies have stated they expect the deal to close in the second half of 2017, operating under individual brands until then.
The tie-up is expected to reduce costs as both companies separately fund legal defenses and lobbying for legislation to authorize fantasy sports in states that have declared it illegal due to gambling laws.
Financial terms were not disclosed, but the deal is structured equally with Draftkings chief executive Jason Robins becoming CEO and FanDuel's chief executive Nigel Eccles becoming chairman. Each company will also receive three board seats and in addition there will also be one independent director.
Jason Robins said in a statement: “Joining forces will allow us to truly realize the potential of our vision, and as a combined company, we will be able to accelerate the pace of innovation and bring a richer experience to our customers than we ever could have done separately.”
Eccles added: “While both companies have accomplished much already this transaction will create a business that can offer a greater variety of offerings, appealing to new users, including the tens of millions of season-long fantasy players that haven’t yet tried our products.”