DraftKings, FanDuel call off daily fantasy sports merger, will go back to being enemies

A merger between two daily fantasy sports titans who devoured ad space on NFL Sundays will no longer happen. A move that would have combined DraftKings and FanDuel into one pay-to-play fantasy sports megasite was called off Thursday, leaving the two as oft-maligned adversaries in the still legally questionable world of daily fantasy sports (DFS).

Leaders from each side suggested the split — or at least the return to a competitive status quo — was mutual.

“We believe it is in the best interests of our customers, employees, and investors to terminate our agreement to merge with FanDuel and move forward as a separate company,” DraftKings CEO Jason Robins said. “This will allow us to singularly focus on our mission of providing the most innovative and engaging interactive sports experience imaginable.”

FanDuel head Nigel Eccles echoed that claim.

“We have determined that it is in the best interest of our shareholders, customers, employees, and partners to terminate the merger agreement and move forward as an independent company,” Eccles said.

The move to dissolve the potential partnership comes one month after the Federal Trade Commission sued to stop the merger, claiming that pairing up the two most well-known DFS sites would create a virtual monopoly on the industry. Combined, the two host more than 90 percent of America’s paid DFS competitions, leaving little room for competitors.

DraftKings and FanDuel, once bitter rivals, had turned to each other in the face of mounting legal challenges across the country. Each had a meteoric rise, attracting casual sports fans with promises of big paydays and one-day fantasy seasons. In 2015, their advertisements were synonymous with live sporting events, ranging from a constant presence during commercial breaks to prominent placement on NBA courts. The pair attracted multiple high-powered investors as well, ranging from New England Patriots owner Bob Kraft to 21st Century Fox to the MLS, NHL, and MLB.

They also attracted the scrutiny of local attorneys general in states across the U.S. The highest-profile case came in New York, where officials designated the games as a form of gambling and ordered the sites to stop accepting money within state lines. An injunction allowed the sites to court players in the Empire State once more while a trial determines whether DFS constitutes gambling, but the uncertain future of the game left its cash-generating prospects in limbo, scaring off some investors and dimming a previously bright future.

Thursday’s news will spur both sites back into direct competition, and that likely means an influx of the “too good to be true” ads that were unavoidable in 2015. Each side will be eager to attract new customers in hopes of convincing investors that ongoing legal drama won’t affect their bottom lines. With DraftKings and FanDuel prepped to butt heads again in 2017, the only winner may be TV viewers with a solid mute function on their remotes.