FanDuel and DraftKings Union – Would They Be Stronger Together?

One of the thrilling surprises of the week appears in the field of daily fantasy sports, involving the two DFS giants, Fanduel and DraftKings union. However, this concept is not as recent as you would think, a report published on Newsweek has already toyed with an idea of the merger.

Despite one segment of the industry considers it absolutely impossible, there are some logical reasons of the cooperation. And some shows how illogical is this idea at the same time. Here is the argument between the two sides discussing the fundamental question; together or alone.

Supportive Factors of FanDuel and DraftKings Union

Starting with the positive approach, logistically the biggest benefits of the merger would be cutting costs. If they were one big DSF company, they would take less efforts spending on legal or lobbying issues. Furthermore, the staff would cost less, and even the marketing since they didn’t need to compete against each other. The amount of money they spend on advertising campaigns and marketing could be a basis of something new.

Arguments Against the Theoretical FanDuel and DraftKings Union

From the negative aspect, there are more reasons supporting the impossibility of the cooperation.

First of all, here are the technological challenges; although the two platforms are similar, the technology behind them wouldn’t make the merge easy.

Secondly, the outlook of the site also raises concerns. What would be the new name of the cooperation, what about be the design and would it really attract new customers? Based on a survey conducted last year, both operators have over 60% actively paying customers already. This indicates, the merger would not attract a huge number of new users, or at least not immediately.

Even if these problems didn’t exist, there would still be legal issues to solve. The two leading companies of the market takes 90% of the business together. (After a merger, the solid NR3 company, Yahoo would have an even stronger competitor.)

So all these reasons are make this question complex and complicated, but we can’t say it ever happens. What is sure is that a possible merger is not around the corner yet, but future can bring different things.

If you have a strong opinion about this question, share it with us in a comment or read more about the daily fantasy sports news and be a part of the industry.