Bipartisan Push for FTC to Investigate FanDuel and DraftKings Amid Antitrust Concerns

Bipartisan Senators Urge FTC Investigation

Senators Mike Lee (R-Utah) and Peter Welch (D-Vt.) have jointly urged the Federal Trade Commission (FTC) and the Justice Department to investigate the alleged actions of sports betting giants FanDuel and DraftKings. In their letter, the senators accuse these companies of potentially working together to obstruct competition, which could violate federal antitrust laws.

Concerns Over Market Dominance

The push for inquiry follows a failed merger attempt in 2016 that would have allowed FanDuel and DraftKings to dominate the market with a stunning 90 percent market share. Following the FTC's decision to block the merger, both companies have expanded their influence in the online sports betting scene, raising alarms about their current business practices.

Accusations of Intimidation

• Lawmakers allege the companies are intimidating competitors.
• They claim use of the Sports Betting Alliance to pressure smaller rivals.
• Claims of interference with rival partnerships and market access.

In their letter, Sens. Lee and Welch assert that the practices of these large operators jeopardize the entry of innovative competitors into the market.

Industry Response

While DraftKings' stock reportedly dipped post-letter, both companies have remained quiet on these serious accusations, raising further questions about their market conduct. The Justice Department acknowledged receipt of the request but has not commented further. The FTC has not yet responded to inquiries.