FTC seeks to halt merger of DraftKings and FanDuel
June 21, 2017 10:22 AM
by Robert Mann
The U.S. Federal Trade Commission said on Monday it will seek to halt the merger of DraftKings and FanDuel, because the merger would create one company controlling more than 90 percent of the U.S. market for paid daily fantasy sports contests.
The acting director of Federal Trade Commission (FTC) Bureau of Competition, Tad Lipsky said, "The proposed merger would deprive customers of the substantial benefits of direct competition between DraftKings and FanDuel."
DraftKings and FanDuel agreed to merge in November after major marketing battles against each other and then jointly versus state lawmakers as many states ruled Daily Fantasy Sports to be gambling rather than games of skill.
"We are disappointed by this decision and continue to believe that a merger is in the best interest of our players, our companies, our employees and the fantasy sports industry," said DraftKings CEO Jason Robins and FanDuel CEO Nigel Eccles in a joint statement. "We are considering all our options at this time”.
The FTC, along with the attorneys general of California and the District of Columbia, say they will soon file a complaint in federal district court seeking a preliminary injunction to block the deal.