FanDuel and DraftKings Face Antitrust Scrutiny Amid Allegations of Collusion

U.S. Senators Mike Lee and Peter Welch have written to the Federal Trade Commission (FTC) asking that it look into the business practices of FanDuel and DraftKings.

In a tweet on December 9th, 2024, Senator Lee stated:

“Healthy competition benefits consumers. FanDuel and DraftKings should be investigated for practices that could harm the sports betting industry and limit choices for users.”

This letter reflects growing apprehensions that the companies’ control over key aspects of the industry may harm smaller operators and inhibit market innovation. Concerns center on the possibility of exclusionary tactics and coordinated efforts to dominate state-level licensing processes and customer acquisition strategies.

What the Critics Say

Allegations include offering promotions that are financially unsustainable for smaller operators and influencing legislative processes to shape market regulations in their favor. Such behavior, if proven, would contravene the Sherman Antitrust Act, which prohibits monopolistic practices.

FanDuel and DraftKings Respond

Both FanDuel and DraftKings have denied any wrongdoing, stating that their practices comply with all applicable laws and that their success stems from innovation and consumer trust. In separate statements, they emphasized their role in expanding access to legal and regulated betting options across the U.S.

Similarly, FanDuel underscored its contributions to the industry, citing significant investments in customer education, responsible gaming initiatives, and community partnerships.

The investigation comes as the U.S. sports betting market is expected to surpass $30 billion in revenue by 2025.

Jenny Tang

An experienced iGaming commentator and analyst based in New York City - Jenny reports on regulation and gambling industry news and events.