WASHINGTON (Legal Newsline) — District of Columbia Attorney General Karl A. Racine announced June 19 that his office has joined the Federal Trade Commission (FTC) and the state of California in opposing DraftKings Inc.’s merger with FanDuel Limited.
Racine noted Draft Kings and FanDuel are the largest providers of daily fantasy sports and they dominate the market. The coalition has filed a lawsuit against the merger, alleging it would lessen competition in violation of federal antitrust laws. This merger could allegedly limit price competition, decrease quality, reduce incentive for innovation in the industry and raise entry fees.
“Daily fantasy sports contests are a pastime that many district residents enjoy -- but it’s no fun for consumers when near-monopolies limit competition and innovation,” Racine said. “Because we believe that this proposed merger would harm consumers in the district, we have joined the FTC and California in opposing it.”
The district joined the FTC’s lawsuit via the Clayton Act. The complaint, which was filed in the United States District Court for the District of Columbia, seeks a preliminary injunction to block the merger.