DraftKings and FanDuel are engaged in talks to merge their daily fantasy sports companies, Bloomberg News reports.
Investors in the privately-held companies have been urging the sides to combine operations, as DraftKings and FanDuel offer similar products and face the same legal issues.
No deal has been finalized between the two companies.
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DraftKings and FanDuel both were valued at over $1 billion during fundraising a year ago, according to the report. But since then, those valuations have been cut in half as the DFS industry battles with states about the legality of the business — many regulators see no difference between daily fantasy games and sports betting, which is illegal in most states.