To merge the two companies, Reuters reports, FanDuel would acquire DraftKings, though “no deal is certain.”
Bloomberg News first reported the merger talks.
In March, New York Attorney General Eric Schneiderman began campaigning against daily fantasy sports, leading to the suspension of games in the state. In total, DraftKings has agreed not to accept entries in nine states, and FanDuel has stopped taking them in 10.
The two companies are currently fighting lawsuits in several states, defending the position that they are not gambling websites.