DraftKings is shrugging off the collapse of its merger with FanDuel as it looks to consolidate its dominance of the daily fantasy sports industry. Chief international officer Jeffrey Haas explains how.
The merger of the two industry giants was opposed by the US Federal Trade Commission on the basis that their combined market share could be as high as 95 per cent. Rather than launching a legal challenge, as each company initially suggested, the operators decided to continue alone.
At the time, FanDuel chief executive Nigel Eccles said: “There is still an 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.”
The operator’s next move was to withdraw from the UK in order to focus on the US business. This hardly suggests business as usual. FanDuel says it has six million US customers in a market comprising 53 million fantasy sports players. It believes it can fight for a bigger audience there, rather than spreading itself too thinly by moving further afield.
Yet its main competitor and erstwhile former merger partner DraftKings has no intention of slowing expansion plans. It has eight million US customers. And it raised almost $100m in new funding earlier this year.