A pair of senators are “elevating considerations” over potential violations of antitrust legal guidelines by two of the main sports activities betting apps, years after a proposed merger by the 2 corporations was blocked.
Sens. Mike Lee (R-UT) and Peter Welch (D-VT) despatched a letter to the Justice Division and Federal Commerce Fee earlier this week, asking the 2 businesses to look at FanDuel and DraftKings’s potential violations of the Sherman Act.
We will’t permit on-line playing corporations like @FanDuel & @DraftKings to violate antitrust legal guidelines, particularly as extra People grapple with the consequences of this trade on our society.
Glad to affix @SenPeterWelch requesting that @linakhanFTC examine and defend customers. pic.twitter.com/Jh6EaHjKk3
— Mike Lee (@SenMikeLee) December 6, 2024
“We will’t permit on-line playing corporations like @FanDuel & @DraftKings to violate antitrust legal guidelines, particularly as extra People grapple with the consequences of this trade on our society,” Lee mentioned in a publish on X.
“@SenMikeLee and I are calling on the @FTC to implement antitrust regulation—which is particularly necessary to guard customers in an trade with the next danger of habit,” Welch mentioned in his publish on X in regards to the letter.
FanDuel and DraftKings introduced intentions to merge in 2016 however dropped the proposal after the FTC and the attorneys normal of Washington, D.C., and California sued to dam the merger in 2017. The lawsuit aimed toward blocking the merger claimed it will have given the mixed firm greater than 90% of the market share within the trade.
Lee and Welch declare that regardless of the withdrawn merger, the 2 corporations have “undertaken a coordinated effort to stress vital enterprise companions to not do enterprise with” new entrants into the sports activities betting market.
“Shortly after their failed merger, FanDuel and DraftKings expanded their dominance by leveraging their positions in fantasy sports activities to turn into on-line sports activities betting giants. FanDuel and DraftKings could also be compounding these harms by anticompetitive conduct,” the letter mentioned.
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The 2 senators urge DOJ and FTC to look at their considerations, claiming that the 2 corporations “shouldn’t be allowed to perform by collusion what was prevented by acquisition.”
The letter is the most recent scrutiny the sports activities betting trade has acquired from members of Congress, with some Democrats eying guardrails on the trade because it has exploded in reputation.
