Two U.S. senators have urged the Federal Trade Commission (FTC) and the Department of Justice (DOJ) to investigate DraftKings and FanDuel, alleging potential antitrust violations by the two leading online betting platforms.
In a joint letter dated December 5, Senator Mike Lee (R-Utah) and Senator Peter Welch (D-Vermont) expressed concerns that the companies might be collaborating to stifle competition within the online betting market. The senators pointed to reports suggesting that DraftKings and FanDuel may be pressuring businesses not to partner with rival platforms.
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. pic.twitter.com/Jh6EaHjKk3
— Mike Lee (@SenMikeLee) December 6, 2024
“After their merger to monopoly was blocked, it seems that FanDuel and DraftKings have arguably acted as one company, violating our antitrust laws,” the letter stated, referencing the companies’ failed 2016 merger attempt. The letter was shared publicly by Senator Lee on the social media platform X, formerly known as Twitter.
The FTC and DOJ have not yet responded to the call for an investigation. Shares of DraftKings were last down about 2.6% in late morning trade on the Nasdaq.