Rev. Al Sharpton Raises Concerns Over DraftKings and FanDuel’s Market Dominance

In a letter to FTC Chair Lina Khan, Sharpton requested a review of the implications this market dominance might have on black players and athletes.

Market Share and Industry Control

Sharpton pointed out that DraftKings and FanDuel together control about 75% of the sports betting market. When adding other major operators like Caesars, Fanatics, and BetMGM, a small number of companies dominate over 90% of the market. A high level of control raises concerns about fair competition and the potential exploitation of vulnerable groups.

Sharpton highlighted that a substantial portion of these companies’ customer bases come from minority groups. Recent research indicates that young black adults in America are highly engaged in sports betting, with an NCAA study showing that 68% of this demographic participates in wagering.

Risks Posed by Market Dominance

Sharpton emphasized that a duopoly in sports betting can lead to negative outcomes for consumers, particularly those who are more susceptible to gambling addiction.

He warned that this market structure could drive vulnerable individuals toward problematic gambling behaviors, increasing the risk of financial and social harm.

Beyond consumer impacts, Sharpton expressed concerns about the integrity of sports, particularly given the central role of black athletes in American sports.

He cautioned that unchecked growth in sports betting could undermine the fairness and reputation of sports, potentially harming both athletes and the broader community.

Market Dominance

FanDuel and DraftKings undeniably dominate the sports betting industry, leaving other operators struggling to compete. Both companies are rapidly expanding, solidifying their positions in new markets.

This dominance is further evidenced by recent acquisitions, such as DraftKings’ purchase of Jackpocket. These highlight their growing influence and the increasing challenge for smaller operators to compete effectively.