The result of such lobbying efforts towards congress has resulted in DraftKings and FanDuel spending hundreds of millions of dollars just to keep operating.
While these companies were back on the path of expansion and profitability, somewhere along the way, they realized that it was pointless to compete against one another.
They were already spending hundreds of millions of dollars advertising their products to Television media advertisements.
Multiply the spending on a yearly basis and you will have a substantial amount spent just trying to survive. So why not join forces? They will save costs on advertising so that they could focus entirely on their troubles with Congress.
Thus the merger came along.
The details regarding the merger are still vague, and there is no new determined company structure (or even a new company name). They are, however, two powerful sports companies fused into an even powerful merger.
What did this merger mean for the industry? Well, even though DraftKings and FanDuel are two household names associated with daily fantasy sports, there are other players as well. These small time providers might find it hard to compete against the ad-space and influence occupied by the DraftKings-FanDuel company.
Moreover, daily fantasy sports are not legal everywhere. There are still about 10 states that ban it and about five places where the legislation is not clear yet. The lobbying work is not over yet.
Daily fantasy sports are a phenomenon that has taken the internet sporting industry by storm. The whole operation is just expanding considerably. Even though pressure from the Governmental authorities is an issue, the sport itself does not seem to lose popularity.
Moreover, Social Media is also contributing extensively to providing popularity to the sport.
You might think that the companies advertising on social media are responsible for the rise, but that is not the case. Advertisements are a part of the process,
but the real game changer is word of mouth promotions by fantasy gamers online, who help promote the brand even further. All in all, there is not downhill in sight for these companies.