On June 19, 2017, the Trump Administration’s Federal Trade Commission (“FTC”) authorized the staff to file an antitrust complaint to block the merger of DraftKings and FanDuel, the two largest daily fantasy sports (“DFS”) sites. The state of California and the District of Columbia Attorneys General joined in the lawsuit. The FTC’s legal challenge is a huge win for DFS customers.
Merger to Monopoly Tests Trump’s Antitrust Enforcement Policy
On November 18, 2016, shortly after President Trump won the election, the two largest DFS firms announced their plans to merge into a single company that would control more than 90% of the DFS market. Regardless of the political backdrop, any merger that would result in a virtual monopoly was sure to be highly scrutinized.