The FTC and attorney generals in California and DC will move to block the merger of FanDuel and DraftKinds, the two largest players in the fantasy sports industry. In their complaint, it is alleged the combined company would immediately
take over 90%+ of the US market for fantasy sports contents.
With that sort of market share, the merger would enable a near monopoly. The FTC therefore wants to block the deal on antitrust grounds. It'd rather see continued competition between the two platforms.
This merger would deprive customers of the substantial benefits of direct competition between DraftKings and FanDuel. The FTC is committed to the preservation of competitive markets, which offer consumers the best opportunity to obtain innovative products and services at the most favorable prices and terms consistent with the provision of competitive returns to efficient producers.- Tad Lipsky, director, FTC's Bureau of Competition
FanDuel and DraftKings responded by saying they'll "consider" all of their options and they continue to believe a merger is the best route forward.
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