Fantasy sports firms FanDuel and DraftKings consent to combine
18 November 2016
A Scottish tech firm which ended up being a significant player in the US dream sports market is to combine with its most significant rival.
FanDuel, which was established in Edinburgh in 2009, has entered a merger agreement with DraftKings.
The deal, which goes through regulatory approval, is expected to close in the second half of next year.
FanDuel has workplaces in Edinburgh and Glasgow but moved its head office to New york city numerous years back.
DraftKings has its headquarters in Boston.
The business offer online dream contests throughout professional sports in the yohaig code US, Canada and the UK.
Cost savings
There are an approximated 57 million dream players in the US alone.
Both companies have been facing regulative and legal challenges to their market, with regulators in some US states ruling that fantasy sports companies' activities totaled up to illegal gambling.
In a joint declaration on Friday, the companies said that by combining and simplifying resources they could "speed up deal with federal government officials to continue to develop a standard regulatory structure".
They likewise anticipate the "tactical merger of equates to" to bring efficiencies and expense savings and assist the yohaig code combined company "accelerate its path to profitability".
FanDuel primary executive Nigel Eccles said: "Having the ability to combine DraftKings and FanDuel provides a significant opportunity for us to even more innovate and disrupt the sports market.
"While both business have actually accomplished much currently, this promotion code deal will create a service that can offer a greater variety of offerings, appealing to brand-new users, consisting of the tens of countless season-long dream players that have not yet attempted our products."
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