Sens. Mike Lee (R-Utah) and Peter Welch (D-Vt.) despatched a joint letter to the Federal Commerce Fee (FTC) and Justice Division on Friday urging lawmakers to research the actions of FanDuel and DraftKings.
Lee and Welch accused the 2 sports activities betting firms of working collectively to “obstruct or impair competition,” which is a direct violation of federal antitrust legislation. The alleged criminality comes after a failed merger between FanDuel and DraftKings in 2016, in response to the lawmakers.
The Federal Commerce Fee blocked the transaction, noting that it could give them a 90 % market share, which lead FanDuel and DraftKing executives to vacate their plans to unite after weeks of public scrutiny.
“Shortly after their failed merger, FanDuel and DraftKings expanded their dominance by leveraging their positions in fantasy sports to become online sports betting giants. FanDuel and DraftKings may be compounding these harms through anticompetitive conduct,” the senators wrote.
They mentioned the 2 firms had been allegedly intimidating opponents via the Sports activities Betting Alliance commerce affiliation. FanDuel mentioned that they had no touch upon the letter’s accusations and DraftKings didn’t present a press release on the claims in Welch and Lee’s letter.
Within the letter, Lee and Welch wrote that the 2 firms have labored collectively to strain smaller rivals to “stymie market access” and likewise interfered with rivals relationships with different stakeholders, resembling sports activities leagues and necessary distributors.
“Such coordinated attacks risk cutting off these new, innovative competitors from critical technology inputs and marketing partnerships.”
The Justice Division confirmed it obtained the Senator’s letter, however declined to remark whereas the Federal Commerce Fee didn’t instantly reply to inquiries from The Hill.
“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,” Lee posted on the social platform X alongside screenshots of the letter.
After the letter’s launch, DraftKings inventory dipped, in response to Yahoo Finance.
