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DraftKings and FanDuel decide to merge

There has been talk about a merge between the two DFS giants for a couple of years now, or basically since the boom started.

There has been actual talk between DraftKings and FanDuel about a possible merge before too. But the consensus opinion is that the cockscomb of the two majority owners was just too big.

But the tail carriage has been lowered considerably since the day the government stepped into the henhouse and flexed its feathers.

FanDuel and DraftKings are the two big dragons in Daily Fantasy Sports. They have announced that they will merge.

DraftKings co-founder Jason Robins will be the CEO of the new company and FanDuels CEO Nigel Eccles will serve as chairman of the board. The rest of the board will constitute of three directors from DraftKings, three from FanDuel and one independent director. The merger is scheduled to be complete late next year.

In the meantime it’s business as usual for their respectively customers. The two operations will continue as is under the two brands.

It’s still not decided if they will use one or two brands once the merger is completed. It would be better to continue under one strong brand according to reigning business theory. People in the know suggest that it will be DraftKings who will live on. The future will tell.

The future will also tell if the antitrust regulators approves of this merger. It’s estimated that the combined entity will hold close to 100% of the DFS marketplace. Even if it’s “only” 95% it’s hard to see this merger as something positive for the customers.

One positive aspect is that the new company can fight the legal battle more effective. Daily Fantasy Sports is under heavy legislating pressure. To fight opportunistic politicians and lobbyists cost a lot of effort, or money in a more adequate description.

If the merger results in a non-regulated market, that has to be considered a big positive for us who enjoy it.
The legal problems where initiated when a DraftKings employee won the big jackpot at FanDuel. It was reveled that it was common practice of employees of both companies to use statistics to gain an advantage and bet at the other company. Not pretty, and no one is to blame but FanDuel and DraftKings that obviously should have prohibit employees of playing Daily Fantasy Sports. It’s my understanding that policy now have been implemented in the branch.

Legal battles are very expensive and that fact drove DraftKings and FanDuel to the same table. That’s when the idea of a merger surfaced as a way forward. Since it made sense to fight the legal battle together perhaps it made sense to join forces all the way. As they seem to agree on now.

Exciting times. Now it’s time to pick some more fantasy winners.

Players I dislike week 12

QB Tom Brady, New England Patriots. New York Jets consider Patriots as their homecoming game every year.

RB DeMarco Murray, Tennessee Titans. Chicago Bears run defense is not all bad, but their pass defense is. Besides, Murray looks banged up.

WR Kenny Britt, L.A. Rams. QB-rookie Jared Goff looked horrible last week. Stay far away from the Rams offense.

TE Rob Gronkowski, New England Patriots. Is injured and will not be even close to 100%. Jets will zoom in on him. You should zoom out.

Players I like week 12

QB Drew Brees, New Orleans Saints. The best fantasy producer in NFL. I’m not afraid of the L.A. Rams defense. Brees is a great contrarian play this week.

RB David Johnson, Arizona Cardinals. The best fantasy producing running back against a putrid Atlanta Falcons defense. Yummy!

WR Mike Evans, Tampa Bay Buccaneers. Not many of your opponents will pick Mike Evans against Seattle Seahawks defense this week, but you should. He is the perfect contrarian play against a Seahawks defense that has not looked unbeatable this season.

TE Tyler Eifert, Cincinnati Bengals. The passes have to someone when WR1 A.J. Green and pass-target RB Giovanni Bernard is out. The target will be Tyler Eifert.

K Justin Tucker, Baltimore Ravens. Patriots Stephen Gostkowski have not been his usual self this season. Justin Tucker has therefore emerged as the best kicker in the league. Bengals has a decent defense that can make red-zone stops against a Ravens that lacks that little bit of extra in offense. That should equal a lot of field goal tries, and that equals a lot of fantasy points for Tucker.

D Kansas City Chiefs defense. Justin Houston is back. He’s one of the best defensive players in the league. He is the heart and soul of the talented Chiefs defense. Expect a very solid performance from this stop-unit going forward. They are licking their chops in anticipation of Denver Broncos QB Trevor Siemian and his low-flying ducks.

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