FTC Blocks DraftKings – FanDuel Merger
The reports of problems with the proposed merger between DraftKings and FanDuel last week seem to have been accurate. According to a release by the Federal Trade Commission (FTC) they have authorized legal action to block the proposed merger between these DFS powerhouses. One of the main concerns of the FTC is that the merger of DraftKings and FanDuel would see a monopoly dominating the industry with as much as 90% of the market belonging to them. The lack of completion would result in the public suffering.
While the FTC is filing a complaint to block the merger, DraftKings and FanDuel are not giving in. If anything has been learnt in the last year it is that both these companies have become very resilient to legal challenges and are battle hardened. In a statement from DraftKings they said,” The FTC’s position on our merger is far from being the final word and we are considering all our options, including litigation.”
According to reports DraftKings will seek to have a federal court issue an injunction against the FTC action. In a joint statement from DraftKings CEO Jason Robbins and FanDuel CEO Nigel Eccles they said,” We are disappointed by this decision and continue to believe that a merger is in the best interests of our players, our companies, our employees and the fantasy sports industry. We are considering all our options at this time.”