What's going on?

�Fantasy sports� let users assemble a team of real-life professional athletes and compete with one another based on how those athletes perform in actual games. They are generally considered to be gambling because the participants bet real money, but New York state is considering legalizing the industry � and that would be a huge boost to the companies involved.

What does this mean?

DraftKings and FanDuel are, by far, the two biggest companies in the space. They have each been valued at more than $1 billion in private rounds of investment but have been beset by legal issues in the US where gambling is often illegal. New York state is pursuing legal action against the two companies, which is one reason why the potential legalization of the industry in that state is such a big deal (the other reason is that New York is a huge fantasy sports market). In an interesting twist, it was reported earlier last week that the two companies are considering merging (probably in an effort to reduce both their legal and marketing costs).

Why should I care?

For the companies: This legislation could be a game changer for the industry. Both DraftKings and FanDuel are private companies that have raised a lot of money from an interesting set of investors (including KKR, Fox, Madison Square Garden and Major League Baseball). But their valuations have been hit hard by their recent legal troubles. As New York and other states appear to come on board, prospects for these companies seem to be improving considerably.

For you personally: It�s probably going to get easier to play fantasy sports – in many jurisdictions. Politicians in 7 states in the US have passed legislation to permit betting on fantasy sports and both companies are expected to be live in the UK by the start of the Premier League season in August. It�s seemingly getting a whole lot easier for the average person to get involved.