• June 20, 2017

Unfiltered Chat: DraftKings & FanDuel Merger Situation is Just Bananas

Unfiltered Chat: DraftKings & FanDuel Merger Situation is Just Bananas

If you’re like me and have had enough of the incessant Amazon/Whole Foods analysis, then you’ll be on board to chat about another high profile merger with major implications on the tech industry. The FTC announced yesterday, that it’s going to attempt to block the merger between DraftKings and FanDuel.

Being a fellow Boston based startup that shares an investor with DK, we’ve been pretty close to the company at times. Here’s a quick unfiltered chat on the deal. Side note: we referenced this but didn’t link to it. Let me know if you’re interested in chatting and we’ll add you to the convo.

Agree/disagree?
12:08 pm
The whole situation is bananas.
12:10 pm
The government has gotten involved to the point where it is nearly impossible for new entrants to go to market and provide viable competition to DraftKings and Fanduel.
12:11 pm
So to the point of a monopoly, they aren’t technically wrong
12:11 pm
They should just go their separate ways right now – forget wasting time and money fighting the FTC.
12:12 pm
But it’s b/c of the gov’t they are in that position
12:12 pm
The both currently operate at a BIG loss, so save the money and get back to business
12:12 pm
Growing and fighting eachother
12:12 pm
The eSports world was way cooler back when it was a head to head match
12:12 pm
Super boring now that they’re linked up and the 3rd in line is tiny little Draft – which Levine is a good buddy, but they’re tiny compared to DK, FD.
12:13 pm
Yea, they are stuck between a rock and hard place though b/c they are either fighting the FTC collectively or they are blowing through $ on ads against one another.
12:13 pm
I also don’t think there’s one winner in the space though.
12:13 pm
True, and now they are paying all the state governments to operate, which is insanely hypocritical considering many state governments run their own gambling services
12:14 pm
Even though they both need to spend against each other to acquire customers, they really haven’t cracked the nut yet.
12:15 pm
It’s still just the very beginning of esports or online gambling or however that want to refer to themselves.
12:15 pm
Yea ultimately it is a tough business on margins because players have no loyalty other than to the platform paying out the most prizes. But for whatever reason most reports indicate DraftKings is outperforming Fanduel in most respects.
12:17 pm
And I do think it’s a skills game – which is why I don’t play anymore. I used to get “lucky” with my limited skill and win some money, but now it’s all powerplayers who do it for a day job and I can’t compete with that, it’s dusting my money
12:16 pm
So maybe go for gambling and build a lobby about bringing that online – it’s only a matter of time until the massive gambling market comes online.
12:17 pm
They did offer different sports as well. I know DK has golf where FD did not.
12:17 pm
It is definitely skill, agreed there. But they need to be pushing the average joe’s like you and me into leagues where we are just betting against our friends
12:17 pm
None have ponies – I was looking to play the Derby and could not.
12:18 pm
Agree, which is kind of what Levine and Draft are focusing on – and appears to be doing a solid job – recently acquired – we’ll see how it goes.
12:18 pm
Betting on ponies for me would be like lighting moneyon fire
12:18 pm
But what a rush right? However, if you studied the ponies, like these guys study the players in any sport you could argue it’s just as much skill.
12:19 pm
Maybe, but horse racing to my is a mystery.
12:19 pm
But either way Robins is a bull dog and only bet I am willing to make is he will be last man standing in this war. One way or another.
12:20 pm
I’d bet ok DK as well. At at the end of the day, I think you said this earlier, they were forced to join forces and now the gov is trying to block it.
12:21 pm
The only real issue is that the ftc and gov is stifling the innovation and padding their pockets while these companies try to reinvent and innovate an industry
12:22 pm
yea, government is being greedy and short-sighted
12:24 pm
Getting rich off entrepreneurs when in reality if they handled the situation better these companies could bring much better transparency and fairness to the industry
12:24 pm
Really just getting rich off you and me dusting the money away when we lose on DK and then the investors of course who need to keep fueling the fire
12:26 pm
yea, that’s why I quit playing. didn’t mind (as much) losing money to Robins and RyMo. But not down with gov’t bureaucrats taking more of my dough