Fantasy sports betting websites DraftKings and FanDuel are reportedly close to finalizing the details of a potential merger.
Sources say the two companies had been meeting for several months to discuss the deal, according to several reports, including from the Wall Street Journal and Bloomberg.
{mosads}DraftKings and FanDuel have declined to comment, calling the reports “speculation.”
Both companies are relatively small.
FanDuel recorded revenue of roughly $100 million last year. The two are similarly valued at over $1 billion each, according to Bloomberg.
Even so, the two are the largest platforms for daily fantasy sports users; 4.5 million bettors used the sites last year — 90 percent of all daily fantasy sports users.
DraftKings and FanDuel have aggressively competed for users.
In 2015, the two spent a combined $200 million on TV ads. Analysts believe that they’re both vying for the same customers and that it would make more financial sense financially to not heavily spend ad dollars to poach users from the other company.
In late October, both companies reached $6 million dollar settlements with the New York Attorney General’s office over issues of false advertising, after having been banned and then reinstated in New York.
DraftKings and FanDuel’s legality is still pending in many other states including Texas, Arizona and Louisiana.