Government officials argue the combination between the two companies could hurt competition by controlling 90% of the daily fantasy sports market within the United States.
Daily fantasy sports operations-primarily DraftKings and FanDuel-have come under fire in the past for blurring the lines between fantasy sports and gambling. The complaint also alleges that entry or expansion by other providers is not likely to provide timely or sufficient competition to offset the anticompetitive effects of the merger.
Tech news source Recode.net reports that should five-member commissioner body be split.
Welcome to the Monday Day FanDuel MLB edition of Picks and Pivots, a fantasy baseball column focused on helping you find the best core lineup for today's Main slate which kicks off at 7:05 PM EST! DraftKings and FanDuel compete to offer the largest prizes by holding different contests, according to the FTC.
" 'This merger would deprive customers of the substantial benefits of direct competition between DraftKings and FanDuel, ' said Tad Lipsky, Acting Director of the FTC's Bureau of Competition".
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According to the FTC, allowing DraftKings and FanDuel to merge would create a single, combined company that would "control more than 90 percent of the US market for paid daily fantasy sports contests".
The email said that DraftKings "will ask a federal court to issue an injunction against" the FTC action. "And I'm not convinced they'll do any better in a federal court".
Sunday's Main winning GPP scores were right above our season average as it took 272.1 FanDuel points to take down a tournament! Over the first 82 slates of the FanDuel MLB season, the average winning score to take down a GPP has been 262.5 points.
The suit does not mean there has been any finding of guilt, only that there is a reason to believe the merger violates the law.
Although season-long fantasy sports contests are prevalent, the FTC rejected the companies' argument on grounds that consumers of paid daily fantasy sports are unlikely to view season-long leagues as satisfactory alternatives, "due to the length of season-long contests, the limitations on number of entrants and several other issues". That's apparently what the FTC believes. Yahoo, a billion-dollar-plus company of its own, hasn't tried to offer over one million dollars in prizes on any given day yet.