• FILE - In this Nov. 24, 2015 file photo, FanDuel advertising covers the post at an NCAA college basketball matchup in the FanDuel Legends Classic consolation game, at the Barclays Center in New York. Daily fantasy sports rivals DraftKings and FanDuel have agreed to merge after months of speculation and increasing regulatory scrutiny. The two companies made the announcement Friday, Nov. 18, 2016, saying the combined organization would be able to reduce costs as they work to become profitable and battle with regulators across the country to remain legal.(AP Photo/Kathy Willens, File)

    FILE - In this Nov. 24, 2015 file photo, FanDuel advertising covers the post at an NCAA college basketball matchup in the FanDuel Legends Classic consolation game, at the Barclays Center in New York. Daily fantasy sports rivals DraftKings and FanDuel ... have agreed to merge after months of speculation and increasing regulatory scrutiny. The two companies made the announcement Friday, Nov. 18, 2016, saying the combined organization would be able to reduce costs as they work to become profitable and battle with regulators across the country to remain legal.(AP Photo/Kathy Willens, File) (The Associated Press)

  • FILE - In this Sept. 9, 2015, file photo, Bear Duker, a marketing manager for strategic partnerships at DraftKings, works at his computer at the company headquarters in Boston. Daily fantasy sports rivals DraftKings and FanDuel have agreed to merge after months of speculation and increasing regulatory scrutiny. The two companies made the announcement Friday, Nov. 18, 2016, saying the combined organization would be able to reduce costs as they work to become profitable and battle with regulators across the country to remain legal. (AP Photo/Stephan Savoia, File)

    FILE - In this Sept. 9, 2015, file photo, Bear Duker, a marketing manager for strategic partnerships at DraftKings, works at his computer at the company headquarters in Boston. Daily fantasy sports rivals DraftKings and FanDuel have agreed to merge ... after months of speculation and increasing regulatory scrutiny. The two companies made the announcement Friday, Nov. 18, 2016, saying the combined organization would be able to reduce costs as they work to become profitable and battle with regulators across the country to remain legal. (AP Photo/Stephan Savoia, File) (The Associated Press)

  • FILe - In this Sept. 29, 2015, file photo, Jason Robins, center, CEO of DraftKings website, speaks on a panel at the Global Gaming Expo in Las Vegas. Daily fantasy sports rivals DraftKings and FanDuel have agreed to merge after months of speculation and increasing regulatory scrutiny. The two companies made the announcement Friday, Nov. 18, 2016, saying the combined organization would be able to reduce costs as they work to become profitable and battle with regulators across the country to remain legal. (AP Photo/John Locher, File)

    FILe - In this Sept. 29, 2015, file photo, Jason Robins, center, CEO of DraftKings website, speaks on a panel at the Global Gaming Expo in Las Vegas. Daily fantasy sports rivals DraftKings and FanDuel have agreed to merge after months of speculation ... and increasing regulatory scrutiny. The two companies made the announcement Friday, Nov. 18, 2016, saying the combined organization would be able to reduce costs as they work to become profitable and battle with regulators across the country to remain legal. (AP Photo/John Locher, File) (The Associated Press)

Daily fantasy sports rivals DraftKings and FanDuel to merge

Markets Associated Press

Daily fantasy sports rivals DraftKings and FanDuel have agreed to merge after months of speculation and increasing regulatory scrutiny.

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The two companies made the announcement Friday but didn't release financial terms. The deal isn't expected to be finalized until later in 2017 and still requires federal approval.

Industry experts say the merger will likely raise anti-trust concerns with regulators since the companies control nearly 90 percent of the market.

Company officials say the merger will help cut costs as the two fight to remain legal in states across the country.

Daily fantasy sports competitions are online games in which players pick teams of real life athletes and vie for prizes based on how those athletes perform in actual games.

But state regulators have questioned whether the competitions amount to illegal sports betting.