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DraftKings and FanDuel abandon fantasy sports merger

13 July 2017

Fantasy sports sites DraftKings and FanDuel have deserted a strategy to combine, less than a month after US competition regulators looked for to obstruct the yohaig code deal.

The deal would have produced a business with control over 90% of the market for paid, everyday fantasy sports contests, government authorities stated.

The companies said the deal would cause greater financial investment, providing advantages for consumers.

They stated they would now seek to grow separately.

FanDuel started in Scotland in 2009 and is now based in New york city. It is number 2 in the US for paid daily fantasy sports contests behind DraftKings, which began in Boston in 2012.

Fantasy sport company FanDuel warns of danger from US guidelines

The 2 firms specialise in a subset of fantasy sports, in which fans pick gamers to develop groups for single games, rather of the season, with the prospective to win prize upon the result.

In November, they stated they had actually consented to merge. Terms were not divulged.

At the time, they stated the bet9ja's welcome offer would allow them to integrate forces on regulatory problems raised by US regulators, who had compared the industry to illegal gambling and banned the sites in some states.

Nigel Eccles, head of FanDuel, said it made sense to progress independently.

"There is still huge, untapped market opportunity for FanDuel, and we will continue to perform our method to grow our company and additional expand the yohaig code dream sports market," he stated in a statement.

Draft Kings chief executive Jason Robbins likewise stated ending the merger would permit the company to "singularly focus" on development, including globally.

Last year there were an estimated 57 million dream sports gamers in the US alone.