Boston-based DraftKings is reportedly in talks to merge with rival daily fantasy sports company FanDuel. The possible merger may raise concerns among regulators.
Bloomberg News broke the story that the rival daily fantasy sports sites are considering a merger, although neither company is confirming that or commenting at this point. Michael McCann directs the Sports and Entertainment Law Institute at the University of New Hampshire School of Law. He said a merger would raise anti-trust concerns about prices.
“Currently, DraftKings and FanDuel have to compete with one another, and that affects the product that they deliver to customers, in terms of payouts for those who win, in terms of any free games, in terms of any obligations customers have in terms of continuing to play."
McCann said the two companies currently make up as much as 95 percent of the market. He acknowledges a merger would make sense for the companies, as they’re currently working together to fight lawsuits and state regulations that classify their games as illegal gambling.
Massachusetts' state regulations limit play on the sites l to players aged 21 or over, ban betting on college sports, and try to level the playing field by ensuring that beginners aren’t competing against experienced players.
