The Reverend Al Sharpton, a civil rights activist, Baptist minister and founder of the National Action Network civil rights organization, has expressed his concerns about DraftKings and FanDuel’s disproportionate betting market share.
In a letter to chair Lina Khan of the Federal Trade Commission, Sharpton requested an examination of the potential adverse effects this “gambling duopoly” could have on black players and athletes. He suggested that the operators’ hegemony exposes players to danger.
Sharpton pointed out that DraftKings and FanDuel command an impressive market share and are responsible for approximately 75% of all wagers. He added that when other big companies such as Caesars, Fanatics and BetMGM are considered, it turns out that a few companies control over 90% of the sports betting market.
Sharpton noted that representatives of minority groups represent a significant portion of these companies’ player bases, making this dominance “especially troubling.” He warned that recent studies imply that certain minorities could be more vulnerable to problem gambling.
According to a study by the NCAA, approximately 68% of young black adults in America are engaging in wagering. This is notably the highest figure out of any major ethnic group, highlighting the dangers black customers could be exposed to.
Duopoly Turns Customers into Losers, Rev. Sharpton Says
Sharpton said that “when a duopoly takes hold, consumers are the biggest losers.” This is when vulnerable people are exposed to the high danger levels and risk overspending and becoming problem players, the civil rights activist noted.
In addition, he emphasized that black athletes are the “center of American sports,” which is why people should be wary of allowing sports betting and gaming to “run rampant” and “infiltrate the integrity of the games.” Sharpton concluded that oversights can adversely impact both black athletes and consumers.
Duopoly or not, the companies have indeed been going from strength to strength. While regulators are yet to address the matter, the presence of FanDuel and DraftKings continues to grow steadily. The latter company, for example, just completed its $750 million acquisition of Jackpocket, a leading lottery tickets app. A few days ago, DraftKings also reported a historic week in New York.
In the meantime, JMP just confirmed that FanDuel dominated the US market in April. The company recently had a major breakthrough as it replaced GambetDC as Washington DC’s sole sports betting operator.
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