FanDuel ‘to make cash call’ in wake of blocked merger

Business News

Investors in fantasy sport operator FanDuel could be forced to inject further funds into the company after the US Federal Trade Commission blocked its proposed merger with rival DraftKings.

The Sunday Times, citing sources close to FanDuel and its investors, reports “another funding round is on the cards”, adding to around $350m (£270m) investors have already put into FanDuel since it was founded in 2009.

FanDuel chief executive and co-founder Nigel Eccles is understood to have now reduced his stake in the company to less than 10 per cent.

The company, which employs around 150 people in Edinburgh, shelved plans to move to a new 58,500 sq ft office at Quartermile 4 in April of this year, having signed a 15-year lease for the offices in 2015 in what was the largest single pre-let in the capital in a decade.

Research firm Eilers & Krejcik Gaming LLC estimates FanDuel and DraftKings together command a 95 per cent share of the lucrative US daily fantasy sports market.

Last month the US Federal Trade Commission blocked their proposed merger believing it would create a “near-monopoly” in the market for prize-led daily fantasy sports (DFS) contests.