FTC moves to block DraftKings-FanDuel merger
The regulator says it wants to stop the deal to preserve competition between the two companies.
The two biggest daily fantasy sports sites control over 90 percent of the US market.
The Federal Trade Commission is trying to block the merger of the two biggest daily fantasy sports websites.
The regulator said Monday the combined company would control more than 90 percent of the US market for paid daily fantasy sports contents. The FTC, along with the Offices of the Attorneys General in California and the District of Columbia, will file a complaint in federal district court seeking to stop the deal. In its complaint, the FTC said DraftKings and FanDuel are each other's most significant competitor.
"This merger would deprive customers of the substantial benefits of direct competition between DraftKings and FanDuel," Tad Lipsky, acting director of the FTC's Bureau of Competition, said. "The FTC is committed to the preservation of competitive markets."
The two companies agreed to combine in November.
The CEOs of both companies, DraftKings' Jason Robins and FanDuel's Nigel Eccles, released a short statement Monday in response, saying they will weigh their options.
"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," they wrote. "We are considering all our options at this time."