Two U.S. senators have formally requested investigations by the Federal Trade Commission (FTC) and the Department of Justice (DOJ) into online sports betting platforms DraftKings and FanDuel. In a letter dated December 5, Senator Mike Lee, a Republican, and Senator Peter Welch, a Democrat, expressed concerns that these companies may be collaborating to stifle competition within the industry.
The senators refer to public reports indicating that DraftKings and FanDuel might have worked together to pressure businesses into avoiding partnerships with rival betting platforms. Both companies are part of the Sports Betting Alliance (SBA), which the senators allege has been used to carry out such actions. The senators remarked, “After their merger attempt was stopped, it seems FanDuel and DraftKings have been operating as a single unit, potentially breaching antitrust laws.”
Senator Mike Lee took to Twitter to emphasize that companies like FanDuel and DraftKings must not be allowed to violate antitrust laws, particularly as the societal impact of online gambling is becoming more apparent. Lee expressed support for the joint request with Senator Welch to have FTC Chair Lina Khan investigate the matter to protect consumers.
### Are Industry Leaders Stifling Competition?
DraftKings and FanDuel have seen significant growth since their proposed merger was blocked by the FTC in 2017, which would have granted them control over 90% of the daily fantasy sports market. Post-abandonment of the merger, both companies have expanded into regulated sports betting, solidifying their positions as key players in the expanding industry.
The correspondence, addressed to FTC Chair Lina Khan and Assistant Attorney General for Antitrust Jonathan Kanter, suggests that the companies may have collaborated to limit market access for smaller competitors. It surmises that they might be leveraging their relationships with major U.S. sports leagues, commercial allies, payment processors, and vendors to dissuade cooperation with other betting platforms. These coordinated actions, according to the senators, have intensified the challenges smaller wagering companies face in competing effectively.
For further details, you can read the complete story [here](https://www.casinoreports.com/senators-draftkings-fanduel-investigated-antitrust/).
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