Senators Mike Lee (R-UT) and Peter Welch (D-VT) have called for an antitrust investigation into DraftKings and FanDuel, citing concerns over potential anticompetitive behavior in the sports betting market.

In a letter to federal regulators, the senators alleged that since their blocked 2016 merger attempt, the two companies have operated as a de facto monopoly, controlling over 70% of US mobile sports betting market share. The lawmakers claim both companies have:

• Coordinated efforts to pressure business partners against working with competitors
• Interfered with competitors' relationships with sports leagues and vendors
• Used their daily fantasy sports (DFS) dominance to gain unfair advantages in sports betting
• Worked through the Sports Betting Alliance to stifle competition

The accusations come amidst the rapid expansion of legal sports betting across America, with 39 states and Washington, DC now allowing some form of sports wagering following the 2018 PASPA ruling.

Market reaction saw DraftKings shares fall 1.29% while Flutter Entertainment (FanDuel's parent company) finished slightly up after initial volatility. The investigation's future remains uncertain with the upcoming administration change, as current FTC and Justice Department leadership will likely be replaced.

The senators emphasized that federal agencies must protect consumers from such alleged anticompetitive practices, urging Assistant Attorney General Jonathan Kanter and FTC Chairwoman Lina Khan to take action. The effectiveness of any potential investigation may depend on the priorities of their successors under the incoming Trump administration.

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