Merger Between FanDuel and DraftKings Dependent Upon Fate of the Federal Trade Commission, as Deal May, Violate Antitrust Rules
Daily Fantasy Sports operators FanDuel and DraftKings dominate the DFS market. They reached a merger agreement last year with the scheduled date for the merger to complete coming up, but the fate of the two operators lies in the hands of the Federal Trade Commission.
The FTC will soon decide if the transaction between the two companies will be unfair to the market, or make the market unfair. As of current, the two companies are separate entities, but with recent regulations pushing both out of several states in the US. This is what was the deciding factor for the two to become one.
Concerns that the FTC has, according to sources, may make the commission to file a lawsuit to stop the merger. The chairman of the FTC has the final say so with a final ruling happening soon, some say maybe this next week.
Some are saying that a split vote could happen with one Democrat and one Republican voting on the FTC side. If this happens then a split vote would still push the merger through. This would seem like it would complicate the situation more, but time will tell.