The Federal Commerce Fee and attorneys basic in California and the District of Columbia said they will file a complaint to dam the merger of the most important fantasy sports activities firms, FanDuel and Draftkings.
The grievance will allege that the mixed agency would management greater than 90 p.c of the U.S. marketplace for every day fantasy sports activities contests, giving the mixed firm a near-monopoly. Anti-trust is the FTC’s motivation right here.
“This merger would deprive customers of the substantial benefits of direct competition between DraftKings and FanDuel,” mentioned Tad Lipsky, the appearing director of the FTC’s Bureau of Competitors. “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.”
On this kind of merger, the businesses may argue that there’s loads of competitors amongst playing websites and other forms of sports activities betting. However the FTC has clearly chosen to narrowly outline the related market as every day fantasy sports activities websites. In early 2016, the analyst agency Eilers & Krejcik Gaming noted that the sector has had a lot of troubles with regulators and the businesses concerned weren’t making some huge cash.
In a be a part of assertion, FanDuel CEO Nigel Eccles and DraftKings CEO Jason Robins mentioned:
At present, the Federal Commerce Fee (FTC) announced it’ll try to dam the proposed merger between DraftKings and FanDuel.
We’re dissatisfied by this determination and proceed to consider merger is within the best pursuits of our gamers, our firms, our staff and the fantasy sports activities trade. We’re contemplating all our choices presently.
As we work collectively to find out our subsequent steps, we want to thank DraftKings and FanDuel gamers, companions and staff for his or her persistence, assist and continued loyalty.