Two U.S. senators, Republican Mike Lee and Democratic Peter Welch, formally requested that the Federal Trade Commission and the Justice Department investigate online betting platforms DraftKings and FanDuel. The request, made in a letter dated December 5, 2024, cited concerns that the two companies are coordinating against competitors.
The senators referenced the companies' failed 2016 plan to merge, stating, 'After their merger to monopoly was blocked, it seems that FanDuel and DraftKings have arguably acted as one company, violating our antitrust laws.' This suggests a belief that the companies may be engaging in anti-competitive practices.
A federal antitrust probe could have significant implications for DraftKings, potentially leading to legal battles, substantial fines, or mandated changes to business practices. This development introduces considerable regulatory uncertainty and risk for the company's operations and market strategy.
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