The Coke and Pepsi of daily fantasy won’t be joining forces, after all.
Via Reuters, FanDuel and DraftKings have decided not to proceed with a plan to merge. The move flowed from a decision by the U.S. Federal Trade Commission to challenge the transaction, arguing that it would give the combined company more than 90 percent of the market.
The two companies engaged in an all-out advertising war in 2015 early in football season, sparking both a public backlash and an effort by various states to challenge the ability to play daily fantasy games for money.
In the two years since then, plenty of states have enacted legislation aimed at legalizing and regulating the games. Absent the merger, the two competitors could decide at any time to reintroduce widespread advertising efforts.