Sponsored Links

The FTC plans to block the DraftKings and FanDuel merger

The commission cites high market share as the reason.
Bloomberg via Getty Images
Bloomberg via Getty Images
Mallory Locklear
Mallory Locklear|@mallorylocklear|June 19, 2017 1:37 PM

Last November, fantasy sports sites DraftKings and FanDuel announced they would be merging -- a deal that was expected to finalize later this year. However, according to an Federal Trade Commission press release, the FTC will try to block the merger.

The FTC's reported concern is that once merged, the new firm would control over 90 percent of the fantasy sports market. "This merger would deprive customers of the substantial benefits of direct competition between DraftKings and FanDuel," said Acting Director of the FTC's Bureau of Competition Tad Lipsky in a statement.

Both companies have struggled against state and federal regulations over the years, butting heads with states like Texas, Washington and New York. Last year, both companies were hit with a $12 million settlement with New York in regards to alleged false advertising.

In a joint statement, DraftKings and FanDuel said, "We are disappointed by this decision and continue to believe that a merger is in the best interests of our players, our companies, our employees and the fantasy sports industry. We are considering all our options at this time." The final decision will be made in a trial set to begin in November.

Turn on browser notifications to receive breaking news alerts from Engadget
You can disable notifications at any time in your settings menu.
Not now

All products recommended by Engadget are selected by our editorial team, independent of our parent company. Some of our stories include affiliate links. If you buy something through one of these links, we may earn an affiliate commission. All prices are correct at the time of publishing.
The FTC plans to block the DraftKings and FanDuel merger