Latest in Gaming

Image credit: Bloomberg via Getty Images

The FTC plans to block the DraftKings and FanDuel merger

The commission cites high market share as the reason.
203 Shares
Share
Tweet
Share
Save

Sponsored Links

Bloomberg via Getty Images

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.

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.
Comment
Comments
Share
203 Shares
Share
Tweet
Share
Save

Popular on Engadget

Engadget's Guide to Privacy

Engadget's Guide to Privacy

View
AT&T reportedly considers offloading its DirecTV satellite unit

AT&T reportedly considers offloading its DirecTV satellite unit

View
T-Mobile’s Sprint merger is opposed by 18 state attorneys general

T-Mobile’s Sprint merger is opposed by 18 state attorneys general

View
HBO Max will revive 'The Boondocks' for a two-season run

HBO Max will revive 'The Boondocks' for a two-season run

View
Microsoft plans to bring broadband to 9 million more Americans

Microsoft plans to bring broadband to 9 million more Americans

View

From around the web

Page 1Page 1ear iconeye iconFill 23text filevr