Daily Fantasy Sports providers DraftKings and FanDuel are nearing a major merger, with sources telling ESPN the deal could be "imminent" and announced as early as next week.

Logistics of a merger

There are still a large variety of logistical factors that need to be worked out, although it's possible they've already been decided upon behind closed doors. For starters, if the companies are to merge, they are unlikely to keep operating under both the DraftKings and FanDuel umbrella. They would likely either combine names, or choose to gravitate towards the DraftKings name, which seems to be more ubiquitous in advertising spaces.

They would also have to decide what the leadership of the company would be and how the company would be structured. The toxic relationship between DraftKings CEO Jason Robins and FanDuel CEO Nigel Eccles has been documented many times, although Eccles has claimed that it has improved this year as the two companies have been forced to work together to face legal challenges. It's hard to say which one would be willing to give up power in a merger.

Finally, they would have to decide where to headquarter the company. FanDuel is based in Scotland and New York, while DraftKings is based in Boston, though they are growing their New York branch.

A logical necessity

The logic behind a merger between the fierce competitors stems from a desire for the two companies to work together to face increasing legal challenges, rather than spend their money and resources battling one another for industry supremacy.

Many states have challenged the legality of daily fantasy sports, declaring them as "gambling" and attempting to render them illegal.

In the past week, both companies have come to a legal settlement with the New York attorney general's office, which mounted one of the more damaging campaigns against daily fantasy sports over the past year.

Their legal troubles were exacerbated by a massive advertising blitz suggesting anyone could become millionaires instantly by playing the game, when in reality, only a small fraction of players win due to larger financial resources and computer-generated algorithms that can cheat the online games.

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