Draft Kings and FanDuel, two gambling sites that swear they are not gambling sites, have come under fire over the past year for their shadiness. There have been accusations of company employees using inside knowledge to win money on each other’s sites, and some states have banned daily fantasy sports altogether, hurting each site’s bottom line.
There were also a lot of mean things said about the endless stream of commercials that turned everyone against Draft Kings and FanDuel.
With revenue down, according to Bloomberg, Draft Kings and FanDuel are discussing a merger.
Investors in DraftKings and FanDuel, which are privately held, have been pushing for a tie-up for some time, according to the people, who asked not to be identified as the discussions are private. The companies offer nearly identical products and spend a lot of money competing with each other; they also face the same legal challenges that threaten their business across the U.S.
No final transaction has been agreed, and the deal may still fall apart, the people said.
It seems like it’s only a matter of time before one or both of these sites either goes under or is shut down completely by the government. It’s a shame, too, as Draft Kings and FanDuel found ways to exploit state laws, and now states want a bite of the action for no reason other than they can. Sure, the fantasy sites’ argument that they are a “skill” game is ludicrous, as you are simply wagering on individuals, not teams, but they have a product people want. Even if their commercials are unbearable.
