Senators Mike Lee and Peter Welch accuse the two operators of conspiring to control the US sports betting market.
Two US senators have formally requested that the Federal Trade Commission (FTC) and the Department of Justice (DOJ) investigate online sports betting platforms DraftKings and FanDuel.
In a letter dated 5 December, Republican senator Mike Lee and Democratic senator Peter Welch raised concerns about the companies allegedly coordinating efforts to suppress competition in the industry.
The senators cite public reports. These suggest DraftKings and FanDuel may have joined together to pressure other businesses not to work with rival betting platforms. Both companies are members of the Sports Betting Alliance (SBA). The senators claim the SBA has been used as a vehicle for these actions.
“After their merger to monopoly was blocked, it seems that FanDuel and DraftKings have arguably acted as one company, violating our antitrust laws,” wrote the senators.
We can’t allow online gambling companies like @FanDuel & @DraftKings to violate antitrust laws, especially as more Americans grapple with the effects of this industry on our society.
Glad to join @SenPeterWelch requesting that @linakhanFTC investigate and protect consumers. pic.twitter.com/Jh6EaHjKk3— Mike Lee (@SenMikeLee) December 6, 2024
Market leaders trying to suppress little guys?
DraftKings and FanDuel have grown significantly since the FTC blocked their proposed merger in 2017. That would have given the combined entity control over 90% of the daily fantasy sports market. Since then, both companies have expanded into regulated sports betting, becoming dominant players in the burgeoning industry.
Lee and Welch addressed the letter to FTC chair Lina Khan and assistant attorney general for antitrust Jonathan Kanter. It alleges that the companies may have acted in concert to limit access to the market for smaller competitors. It accuses them of using their influence with major US sports leagues, commercial partners, payment processors and vendors to discourage cooperation with other sportsbooks.
These coordinated efforts, the senators claim, have made it increasingly difficult for smaller wagering platforms to compete effectively.
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