Senators Urge FTC to Investigate DraftKings and FanDuel

Senators Call for DTC Investigation of DraftKings and FanDuel

By Amelia Walker Senior Content Writer Updated: 01 January 2025

Amelia Walker Senior Content Writer

Amelia Walker is a Senior Content Writer at Betting.US. She has a law degree and deep knowledge of the gambling laws in the United States. Her mission is to keep players informed about responsible gambling, while her passion for sports helps her create useful guides. Amelia has over a decade of experience in betting, which has positioned her as a trusted voice among our readers.

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Allegations of Anti-Competitive Practices

In a letter from December 5, Republican Sen. Mike Lee and Democratic Sen. Peter Welch raise concerns that DraftKings and FanDuel may have conspired to suppress competition in the online betting market.

The senators cited reports suggesting that the two companies have used their influence to pressure businesses into avoiding collaboration with rival platforms. Both of them are members of the Sports Betting Alliance (SBA) and this alleged coordination could potentially violate US antitrust laws.

We can’t allow online gambling companies like @FanDuel & @DraftKings to violate antitrust laws, especially as more Americans grapple with the effects of this industry on our society. Glad to join @SenPeterWelch requesting that @linakhanFTC investigate and protect consumers.

Following the blocking of their merger to form a monopoly, it appears that FanDuel and DraftKings may have been operating as if they were a single entity, potentially breaching antitrust regulations.

Industry Giants Attempting to Stifle Smaller Competitors?

Following the blocking of their merger to form a monopoly, it appears that FanDuel and DraftKings may have been operating as if they were a single entity, potentially breaching antitrust regulations. The merger would have allowed them to command over 90% of the DFS market. In the years following, both companies have ventured into regulated sports betting and have established themselves as leading forces.

Lee and Welch directed the letter to FTC chair Lina Khan and Assistant Attorney General for the Antitrust Division Jonathan Kanter. The letter claims that the companies might have collaborated to restrict market access for smaller competitors. It accuses them of leveraging their relationships with major US sports leagues, commercial partners, payment processors, and vendors to deter cooperation with other sportsbooks.

Broader Legal Challenges

In addition to the senators’ call for an investigation, both companies are currently facing legal challenges. DraftKings is involved in a lawsuit with the NFL Players Association over unpaid fees related to the use of NFL players’ likenesses in non-fungible tokens (NFTs), with the NFLPA seeking $65 million in damages.

FanDuel recently settled a dispute with the MLB Players Association over similar issues and was fined $10,000 in Massachusetts for taking prohibited bets on college basketball.

While DraftKings and FanDuel have not publicly responded to the senators’ request, the potential for an FTC and DOJ investigation looms large. The outcome could redefine how companies engage with competitors and partners in this competitive market.