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Combined, they own something like 96%

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of that daily fantasy market, so there

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are some antitrust issues.

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But the board will be made up of nine people--

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four people from DraftKings, four from FanDuel,

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and one outside board member.

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ALEXIS CHRISTOFOROUS: So what does bringing these

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two titans together in this industry

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do for the overall industry?

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DAN ROBERTS: Well, I think it's really important to note that

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even though these companies have had a lot of name

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brand recognition-- they spent a ton

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on advertising last NFL season.

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It's been really hard, even if you're not a sports fan,

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to avoid hearing about them.

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Even though everyone has heard a lot about them,

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they're still not profitable.

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They brought in something like $3 billion combined in entry

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fees last year, in 2015, and they've raised something like

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$1 billion in venture capital combined,

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but they're not profitable yet.

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They're spending a lot on marketing and advertising

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and now, as I've said, they've spent so much on legal

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costs that it seems as though the only

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option left was to combine.

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So the hope is that by combining,

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they can get a better path to profitability,

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better serve customers, and they kind of cut out inefficiencies.

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I also have to imagine that if and when the deal goes through,

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when there is a combined single company,