A proposed merger between DraftKings, Inc. and FanDuel, Inc. will be challenged by the Federal Trade Commission. The FTC claims that the merger would create a company that controls more than 90 percent of the market.
In the past rivals, the companies decided to join forces in November 2016 as each fought state regulators to get Daily Fantasy Sports legalized. According to data from Eilers and Krejcik Gaming, the two companies have 95 percent of daily fantasy sports.
The FTC will file a lawsuit requesting a preliminary injunction to prevent the companies from closing the deal while it proceeds with an internal review to determine if the merger is legal under antitrust law.