Fantasy sports games may combine
FanDuel and DraftKings ‘in merger talks’ – reports
The companies are locked in ongoing legal battles in the US which is believed to be taking its toll on their operations.
Both are valued at about $1 billion and have successfully raised capital to expand.
But a number of states have challenged the legitimacy of their operations. FanDuel has ended paid games in 10 states and both companies agreed to suspend access for New York residents in March after Attorney General Eric Schneiderman mounted a high profile campaign against the businesses.
A resolution to the dispute is making slow progress and Daily Business reported last week that FanDuel, co-headquartered in Edinburgh and New York, was threatening to pull out of New York state unless a proposed new bill was passed allowing it to operate.
The company is planning to launch in the UK in August as its seeks other markets free from online restrictions.
Fantasy sports companies are being pursued by campaigners who say they breach US gambling laws. The companies say they are not engaged in gambling.
FanDuel was co-founded in Edinburgh by Nigel and Lesley Eccles (pictured) and a group of friends.
A FanDuel spokesman tonight said it was ‘speculation’ was not making any further comment.