Your Favorite Fantasy Sports Companies Won't Be Merging

FanDuel Ltd. and Draft Kings Inc., which control some 90% of the U.S. market for paid fantasy sports leagues, have called off their merger after the Federal Trade Commission pledged to block the combination.

In a joint statement, Fanduel CEO Nigel Eccles and DraftKinds CEO Jason Robins said that the government's opposition to the proposed transaction had forced the two companies to withdraw their offers.

"We are disappointed by this decision and continue to believe that a merger is in the best interests of our players, our companies, our employees and the fantasy sports industry," the statement said. "We are considering all our options at this time."

The merger had seemed like a longshot from the beginning, considering that FanDuel and Draft Kings have come to dominate a nascent industry with enormous potential for growth. Establishing a dominant player seemed to run counter to basic rules around anti-trust.