Experts: Time good, but rumored fantasy deal challenging
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BOSTON (AP) Daily fantasy sports experts suggest the time's right for a deal to merge DraftKings and FanDuel as the rivals fight for survival amid greater regulatory scrutiny.
Media reports say the companies have spoken about making a deal, though officials at both companies have dismissed the reports as speculation.
Daniel Etna, a New York sports lawyer, says a merger would allow the companies to end their costly rivalry, save on operational costs and consolidate mounting legal and lobbying expenses.
But Dustin Hecker, a Boston business lawyer, warns a merger could run afoul of federal antitrust laws. A combined company would effectively be a monopoly controlling over 90 percent of the market.
Paul Charchian, president of the Fantasy Sports Trade Association, believes a possible merger could make the industry stronger, even if it means layoffs and consolidations.