“Such coordinated attacks risk cutting off these new, innovative competitors from critical technology inputs and marketing partnerships,” the senators wrote. “Even modest obstruction in these negotiations can delay entry and expansion, and potentially deprive the new entrants of access to the capital needed to vigorously compete with the larger players, FanDuel and DraftKings.”
The letter also highlights previous antitrust actions against the two companies. In 2016, the FTC and state enforcers from California and Washington, D.C., sued to block a proposed merger between DraftKings and FanDuel, arguing that it would consolidate over 90% of the market for daily fantasy sports, harming consumers by reducing competition. The merger was ultimately abandoned the following year after continued scrutiny from regulators.
Since then, DraftKings and FanDuel have expanded their dominance into the online sports betting market. The senators warn that the two companies are now using their substantial market power in both daily fantasy sports and sports betting to prevent the rise of new challengers.
