FanDuel in merger talks with DraftKings – reports

FanDuel co-founders Nigel Eccles, Lesley Eccles and Tom Griffiths

New York and Edinburgh-based fantasy sports operator FanDuel is in early-stage talks to merge with rival DraftKings, according to news reports.

Bloomberg reported that investors in DraftKings and FanDuel, which are privately held, have been pushing for a merger for some time.

The companies offer a similar service and face the same legal challenges to their business models across the United States.

No merger deal has yet been agreed, the reports said.

Analysts were placing valuations of more than $1 billion on both firms about a year ago.

But both companies have since been fighting regulators in several US states who claim their operations amount to illegal gambling and so the valuations of the firms have fallen by about 50%, analysts said.