SLC Times

Senators Mike Lee and Peter Welch have formally requested that the Department of Justice (DOJ) and Federal Trade Commission (FTC) investigate FanDuel and DraftKings. The senators allege that the two companies may be violating Section 1 of the Sherman Act, which prohibits coordination to construct or impair competition.

Senator Mike Lee stated, "FanDuel and DraftKings didn’t get their monopoly through a merger, so now they’re trying to achieve it by arguably acting as one company." He further expressed concerns about how such actions could threaten innovation, limit consumer choice, and stifle new market entrants. "American consumers deserve better, and it’s time for the DOJ and FTC to look into it," he added.

Echoing these sentiments, Senator Peter Welch commented on the potential consequences of increased market power. "More market power brings more opportunity to exploit consumers. FanDuel and DraftKings are trying to achieve exactly that by working together to stifle competition," said Welch. He emphasized that evading antitrust laws is not a sustainable strategy: "But skirting antitrust laws is never a gamble that pays off. It’s time for the DOJ and FTC to investigate their anticompetitive practices."

The letter from Senators Lee and Welch highlights concerns over possible monopolistic behavior in the sports betting industry, urging federal agencies to take action.