FTC Investigation Sought for DraftKings, FanDuel Collusion Claims

United States: Republican senator Mike Lee and Democrat Peter Welch have written a letter to the Federal Trade Commission (FTC) and Department of Justice (DOJ) urging them to consider a probe into two betting platforms, DraftKings and FanDuel for perceived anti-competition actions.

In a letter dated December 5, the senators accused the companies of colluding to pressure businesses not to partner with their competitors. The allegations come years after their proposed 2016 merger was blocked on antitrust grounds, as reported by Reuters.

“After their merger to monopoly was blocked, it seems that FanDuel and DraftKings have arguably acted as one company, violating our antitrust laws,” the senators wrote, with Lee sharing the letter on social media platform X.

Impact on Market and Lack of Comments

Today, both DraftKings and FanDuel have not commented or provided any form of response to these allegations. It is also notable that representatives of the FTC and the DOJ have likewise not commented on the case.

DraftKings’ shares reflected market uncertainty, dropping 2.6% in Nasdaq trading as of late Wednesday morning.

A History of Scrutiny

The blocked merger in 2016 marked a turning point in regulatory oversight of these companies, with increased focus on their operations ever since. This latest move by the senators signals continued scrutiny of their market behavior, as reported by Reuters.