Fantasy Forecast: DraftKings & FanDuel To Merge

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BOSTON (CBSMiami) -- Rivals in the world of daily fantasy sports, websites DraftKings and FanDuel have agreed to merge.

Following increasing scrutiny by state and federal regulators about whether the daily games constitute as gambling, the companies announced Friday they'd be joining forces. Together they'd be able to reduce costs in the fight to exist.

The online games played between both friends and strangers involves choosing a "fantasy" team of real life athletes while competing for cash and other prizes based on how those players perform in the actual games.

In Nevada, both sites were shut down in 2015 for not operating with a gambling license. In New York, the state that saw the largest daily fantasy customer base, a settlement forced both FanDuel and DraftKings to temporarily close shop before Gov. Andrew Cuomo signed into legislation that they're "games of skill" rather than "games of chance," which are illegal online in New York.

According to industry insiders, three million Floridians currently play some sort of fantasy sports games.

The proposed merger requires federal approval.