DraftKings & FanDuel Officially Abandon Merger

DraftKings and FanDuel have scrapped their merger plans after initial proposals were rejected by the US Federal Trade Commission (FTC).

An initial scheduling conference with the FTC national consumer protection agency was set to occur before an administrative judge today (Friday), but the two daily fantasy sports (DFS) operators announced on Thursday that they will now seek to pursue their own development.

A deal between the two companies had been mooted for some time and an agreement was announced in November 2016. However, the FTC, estimating the pair held 90% of the US market, raised concerns over the impact the deal could have on competition.

The FTC said it would join with the state Attorneys General of California and the District of Columbia to file a complaint in federal district court to seek a preliminary injunction to halt the deal and “maintain the status quo”, pending an administrative trial.

In a statement, FanDuel chief executive Nigel Eccles said: “FanDuel decided to merge with DraftKings last November, because we believed that this deal would have increased investment in growth and product development thereby benefiting consumers and the greater sports entertainment industry.

More at iGaming Business

Related Stories from This Week in Gambling:

  • Pending Fantasy Sports Merger Begs Question Now that the two largest online daily fantasy sports sites are back in the news—nearing a deal to merge into a company drawing $100 million in revenue, according to the Wall Street Journal—it’s a good time to answer a nasty, nagging question: Are these sites legal? Because the […]
  • Fantasy Sports Pay $12 Million for “Deceptive Ads” in New York The country’s two leading online daily fantasy sports companies are paying out big — in fines to the state. FanDuel and DraftKings on Tuesday agreed to pay $6 million each to settle lawsuits from Attorney General Eric Schneiderman alleging they engaged in false and deceptive advertising […]
  • DraftKings and FanDuel Merger Unlikely The US Federal Trade Commission (FTC) has said that it will seek to block the proposed merger between daily fantasy sports (DFS) companies DraftKings and FanDuel. According to reports in the US, the FTC has raised concerns over how the deal could impact competition in the US DFS […]