FTC challenge to the DraftKings-FanDuel merger (abandoned 2017): Allegations, Court Orders and Status

What this case is about

The Federal Trade Commission, with the Attorneys General of California and the District of Columbia, challenged the proposed merger of DraftKings, Inc. and FanDuel Limited.

The record lists FTC Docket No. 9375 (administrative) and U.S. District Court for the District of Columbia case 1:17-cv-01195. It is an antitrust and competition lawsuit brought by regulators, not by consumers.

On 19 June 2017 the FTC voted 2-0 to sue for a preliminary injunction and issued an administrative complaint, with an administrative trial set for 21 November 2017.

The FTC alleged under Clayton Act section 7 and FTC Act section 5 that the merger would give one firm more than 90 percent of the US paid daily fantasy sports market.

Who is covered

The case concerns the two largest paid daily fantasy sports companies and the players and competitors in that market. No class of consumers sued.

The federal court filing was in Washington, D.C.; see gambling lawsuits in the District of Columbia. One of the defendants has its own page: DraftKings lawsuits.

Is there a payout?

No payout exists in this case. It was a regulator's challenge to a merger, and the record shows no damages, no fund and no consumer claim process.

The case ended before any ruling on the merits. There is nothing to claim.

What the court decided

A complaint states one side's allegations, and no court ruled on them. The companies abandoned the merger on 13 July 2017 rather than litigate.

On 13 July 2017 the parties filed a joint motion to dismiss the complaint, and the Commission issued its order dismissing the complaint on 14 July 2017. As of 14 November 2026 the status is dismissed.

The FTC's press release and case pages hold the documents. The two firms still compete today.

Why it matters

The case is the only US merger challenge in the gambling-adjacent sector to date and the reason the two firms still compete. The FTC never obtained an order blocking the merger; the challenge ended because the companies abandoned the deal in July 2017.

More cases of this type sit under antitrust and competition lawsuits.

Questions people ask

Did a court block the DraftKings-FanDuel merger?

No court ruled. After the FTC and two state attorneys general sued in June 2017, the companies abandoned the merger, and the complaint was dismissed on 14 July 2017.

Is it worth joining a class action lawsuit over this?

There is no class action here. The FTC acted as a regulator, and the record shows no fund, claim form or payout.

Why did the FTC object?

The FTC alleged the merger would give one firm more than 90 percent of the US paid daily fantasy sports market. That is the FTC's allegation, not a court finding.