Plus   Neg

Report: Authorities Have Issues With DraftKings/FanDuel Merger


U.S. regulators are likely to block the proposed merger of daily fantasy sports websites FanDuel and DraftKings over serious competition concerns, Recode reported, citing sources familiar with the matter.

The companies are currently waiting for federal regulators to approve their merger, which was announced in November 2016.

As per the report, some legal staff at the U.S. Federal Trade Commission or FTC, which is doing its customary antitrust review, expressed concerns that allowing the merger would effectively remove all competition from the marketplace.

These staff reportedly may recommend to FTC Acting Chair Maureen Ohlhausen and the sole remaining Commissioner Terrell McSweeny that they vote to fight this merger. Usually, the FTC is led by five commissioners, but three of the slots are currently empty.

The voting is expected to happen as soon as this week.

It is projected that the combination of the two major players in the daily fantasy sports will dominate the market. Both companies, which offer basically the same service, control an estimated 80% of this market, while each currently have exclusive deals with national broadcasters and professional sports leagues.

by RTTNews Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Follow RTT