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Fantasy sports merger blocked by Federal Trade Commission

A pending merger between fantasy sports giants "Fan Duel" and "Draft Kings" is now off after being blocked Thursday by the Federal Trade Commission.

Both companies have been struggling in recent months, weighed down by millions in legal fees after a slew of lawsuits nationwide.

"You hardly see them on TV anymore, they are really in a cost containment mode," said Paul Charchian, President of the Fantasy Sports Trade Association. "This is a merger that would have helped both companies remain more viable than they are now."

Concerns over a possible monopoly are what ultimately led to the decision by the FTC. The two companies control roughly 90 percent of the daily fantasy market, making up about 15 percent of the fantasy sports marketplace as a whole. The decision creates a window for more competition in an industry where demand remains strong.

"It certainly opens up the door for other well-funded companies to come out and compete against them," Charchian said.