FanDuel, DraftKings merger is off

BOSTON (WWLP) – The two largest daily fantasy sports companies have decided that now is not the best time to merge, avoiding a federal antitrust challenge.

In November, the two companies said by combining, they would be able to reduce costs as they work to become profitable and battle with regulators across the country to remain legal.

The U.S. Federal Trade Commission said in June that it would attempt to stop the merger because the combined company would control more than 90 percent of the US market for paid daily fantasy sports.

In Massachusetts it is legal to play daily fantasy sports.

DraftKings is based in Boston, FanDuel in New York.

An email from FanDuel said, “While our opinion has not changed, 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. There is still enormous, untapped market opportunity for FanDuel, and we will continue to execute our strategy to grow our business and further expand the fantasy sports industry.”