Update: FanDuel has officially walked away from the merger.
FanDuel & DraftKings not merging after FTC scrutiny. How they thought they could even attempt it is baffling. pic.twitter.com/UZfsBC8jPI
— Darren Rovell (@darrenrovell) July 13, 2017
DraftKings and FanDuel, the country’s top two daily fantasy sports sites, have had a rough go of it the past few years, as many states have banned their product.
To fight back, both companies agreed to merge. However, that merger is now in jeopardy, as the Federal Trade Commission has announced that it plans to fight the merger on antitrust grounds, claiming that it would create a monopoly.
Given that roadblock, FanDuel is reportedly considering stepping away from the merger.
During an interview on Tuesday, FanDuel CEO Nigel Eccles told Recode that his company is still “evaluating options,” and when pressed whether the two daily fantasy sports sites might abandon their plans or fight federal antitrust regulators, he replied: “All of those things are still on the table.”
It’s unclear what the path forward will be for these companies, which still very much have murky futures, either together or apart. It is true that competition is generally good for consumers, but these circumstances are unique, as it’s tough for either company to expand its business too much alone with all the legal challenges they face.
We don’t know the future of the daily fantasy sports yet, but even in an uncertain future, FanDuel might think it’s best to go it alone.