Senators Call for FTC Investigation of DraftKings and FanDuel

WASHINGTON (Reuters) – Two U.S. senators have requested the Federal Trade Commission (FTC) and the Justice Department to investigate online betting platforms DraftKings (NASDAQ:DKNG) and FanDuel due to concerns that they are coordinating against competitors.

In a letter dated Dec. 5, Republican Senator Mike Lee and Democratic Senator Peter Welch urged the investigation following reports that the two companies were allegedly colluding to pressure businesses against engaging with competitors.

"After their merger to monopoly was blocked, it seems that FanDuel and DraftKings have arguably acted as one company, violating our antitrust laws," they wrote, referencing the companies' failed plan to merge in 2016. Lee shared the letter on social media platform X.

Representatives for the two companies, the FTC, and the Justice Department were not immediately available for comment.

Shares of DraftKings were down about 2.6% in late morning trade on the Nasdaq.