2020_8_pragmatic.gif
2020_8_pragmatic.gif
2020_8_pragmatic.gif
CLOSE
× Gambling News In-Depth iGaming Calendar Connections GI Friday Trafficology GI Magazine
GGA 2020 AffiliateCon
NEWS 16 June 2017

DraftKings/FanDuel merger under threat from Federal authorities

By Robert Simmons
The proposed merger between DFS operators DraftKings and FanDuel hangs on a knife edge today as some members of the US Federal Trade Commission (FTC) have reportedly voiced concerns about the effects that such a merger could have on competition in the US daily fantasy sports industry.

DraftKings and FanDuel are two of the biggest players in the DFS industry in the US and agreed to merge on a 50/50 ownership basis in November 2016. The merger was then referred to the US Federal Trade Commission for review and approval/dismissal.

Under current US Federal anti-trust laws, a company is prohibited from harming competition in a given field by creating a monopoly in their industry. If the merger was completed successfully the combined DraftKings and FanDuel entity would claim an 80% share of the DFS market in the USA, effectively constituting a monopoly on the industry.

In the opinion of the FTC this is enough justification to consider blocking the proposed merger, and some legislators within the commission have called on FTC Acting Chair Maureen Ohlhausen and the sole remaining Commissioner Terrell McSweeny to do just that.

However, the commissioners are under no obligation to adopt the proposals and will vote on the matter within the next few weeks.

If they choose to proceed with the proposals FTC attorneys would file a lawsuit in federal court seeking to stop the deal. The companies could then choose to abandon the merger, fight the lawsuit in court, or try to reach a settlement with the Federal Trade Commission that would allow the merger to go through with agreed concessions.

A deadlocked vote in the FTC would allow the DraftKings/FanDuel merger to proceed unimpeded.

This is not the first time that both DraftKings and FanDuel have ran afoul of US competition authorities, with the businesses practices of both being called into question after a huge $200m advertising campaign in 2015. At the time several state regulators notably those in Nevada and New York questioned whether daily fantasy sports contravened existing state anti-gambling laws, however no action was taken against either company.
RELATED TAGS: Online | eSports | Industry | Mergers & Acquisitions | Legal & Regulatory
DISCUSS THIS ARTICLE
IN-DEPTH 18 February 2020
A decade to remember
READ MORE

PREMIUM CONNECTIONS
1xPartners
Affiliate
1xPartners is the innovative and exciting affiliate program offered by 1xBet, one of the world's leading sportsbooks and casinos. Offering ...
ActiveWins
PR and Marketing
ActiveWin has ripped up the rulebook on the traditional agency prototype. Our model is based on performance - as you ...
BetConstruct
Systems and Software
BetConstruct is a global award-winning technology and services provider for online and land-based gaming industry. BetConstruct's innovative and proven offerings ...
Digital Isle of Man
Legal and Jurisdictions
Digital Isle of Man is responsible for the thriving Digital sector in the Isle of Man, spanning the Island's international ...
Newgioco Group
Systems and Software
Newgioco Group, Inc. (OTCQB:NWGI) is a premier leisure betting technology company providing regulated online and land-based gaming and sports ...
NSoft
Systems and Software
NSoft is an award - winning internationally recognized software solutions provider for betting industry. The company has more than 200 employees ...
Global Gaming Awards
Industry Awards
The Global Gaming Awards London recognise the most innovative companies and individuals of the gaming world. The Awards are powered ...
BBIN
Systems and Software
The Leading iGaming Software Supplier in Asia
Efbet
Systems and Software
We have partnered up with deVRealm in a joint venture for the development of new gambling technology platforms. The primary ...
Zimpler
Payments
Zimpler provides a complete In and Out payment solution for online services. That means we take care of identifying the ...