FANTASY MERGER IN DOUBT

The prospects for the planned merger between daily fantasy sports giants DraftKings and FanDuel dimmed Monday as the Federal Trade Commission announced intentions to oppose the union. The FTC plans to seek an injunction in federal court to prevent the merger of the two companies, which control about 90% of the daily fantasy sports market. The complaint will come in a joint filing with the backing of the attorneys general of California ( Xavier Becerra) and the District of Columbia ( Karl Racine), the FTC said in a statement. “This merger would deprive customers of the substantial benefits of direct competition between DraftKings and FanDuel,” Tad Lipsky, acting director of the FTC’s Bureau of Competition, said in a news release. “The FTC is committed to the preservation of competitive markets, which offer consumers the best opportunity to obtain innovative products and services at the most favorable prices and terms consistent with the provision of competitive returns to efficient producers.” DraftKings and FanDuel announced plans to merge in November after both companies incurred massive lobbying and legal fees as New York and other states challenged the legality of daily fantasy sports. “The FTC’s action is effectively the death knell for the proposed merger,” Daniel

Wallach, a sports and gambling law attorney, told USA TODAY Sports. “While the companies will certainly challenge the agency decision in federal court, they are unlikely to prevail.” FanDuel CEO Nigel Eccles and DraftKings CEO Jason Robins said in a joint news release that they are “considering all our options at this time.” “We are disappointed by this decision and continue to believe that a merger is in the best interests of our players, our companies, our employees and the fantasy sports industry,” the statement said.