Senators Mike Lee and Peter Welch accuse the two operators of trying to dominate the US sports betting business.
Two US senators have formally requested that the Federal Trade Commission (FTC) and the Department of Justice (DOJ) look into online sports betting sites DraftKings and FanDuel.
In a letter dated December 5, Republican Senator Mike Lee and Democratic Senator Peter Welch expressed alarm about the firms allegedly coordinating attempts to limit industry competition.
Senators cite public reports. These findings show that DraftKings and FanDuel may have collaborated to push other firms not to partner with other betting platforms. Both businesses are part of the Sports Betting Alliance (SBA). The senators argue that the SBA was exploited as a vehicle for these acts.
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“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 to each other.
Are market leaders attempting to stifle the smaller players?
DraftKings and FanDuel have developed tremendously since the FTC rejected their proposed merger in 2017. This would have given the merged corporation control of 90% of the daily fantasy sports industry. Since then, both businesses have moved into legal sports betting, becoming significant participants in the rapidly growing market.
Lee and Welch wrote the letter to FTC Chair Lina Khan and Jonathan Kanter, Assistant Attorney General for Antitrust. It contends that the businesses may have worked together to impede smaller rivals’ market access. It accuses them of exploiting their connections to major US sports leagues, business partners, payment processors, and vendors to discourage collaboration with other sportsbooks.
These concerted efforts, the senators argue, have made it increasingly difficult for smaller wagering platforms to compete successfully.
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