Boston-based DraftKings being the largest and Scotland-based FanDuel being the second largest daily fantasy Sports Company based on their revenues were merging.
The Federal and state officials have decided to block this merger as it would harm the competition by capturing as huge as 90% of the daily fantasy sports market in the U.S.
The officials’ concern was over the fact that the merger would deprive customers of the benefits incurred through the head on competition between the two betting giants.
A lineup of professional athletes is selected by the customers after paying the fee. They can compete for daily prizes based on their on-field performance. The two companies would compete to offer the best and largest variety of prizes and greatest variety in the contest, according to Federal Trade Commission.
DraftKings and FanDuel showed their disappointment over the decision of the Officials and still believe that the merger is vested best in the interest of their players, companies, employees and the fantasy sports industry.