DraftKings Seeks Declaration that Daily Fantasy Sports Contests are Legal in Texas

On April 16, 2018, DraftKings sought a declaratory judgment in Texas state court against Texas Attorney General, Ken Paxton. According to the petition, Paxton’s actions have sought to eliminate daily fantasy sports in Texas, and now, DraftKings is seeking a declaratory judgment to determine if daily sports are legal under Texas state law. DraftKings argued that the court need not look further than Paxton’s treatment of DraftKings’ main competitor, FanDuel, to see that Paxton’s “actions pose direct and particularized harm to DraftKings.” In their…
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Federal Judges Turn to Indiana State Court in DraftKings and FanDuel Lawsuit

On March 7, 2018, two Seventh Circuit judges, Judge Frank Easterbrook and Judge Ilana Diamond Rovner, certified the following question to the Supreme Court of Indiana, “Whether online fantasy‐sports operators that condition entry on payment, and distribute cash prizes, need the consent of players whose names, pictures, and statistics are used in the contests, in advertising the contests, or both.” As we have previously reported, in May 2017, a group of 3,000 college-athletes, led by former Northern Illinois University football players Akeem Daniels and…
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Lawsuit Concerning Use of Student-Athletes’ Name and Likeness by DraftKings and FanDuel Continues

On February 22, 2018, two Seventh Circuit judges, Judge Frank Easterbrook and Judge Ilana Diamond Rovner, said that they would likely need an answer from the Indiana judiciary before they can decide whether to revive a proposed class action suit brought against DraftKings and FanDuel. As we have previously reported, in May 2017, a group of 3,000 college-athletes, led by former Northern Illinois University football players Akeem Daniels and Cameron Stingily, and former Indiana University football player Nicholas Stoner, bought a suit alleging that…
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Massachusetts Bill Proposes Legalization of Daily Fantasy Sports Amid Pending Supreme Court Ruling

On February 14, 2018, Massachusetts Legislature introduced a bill aimed at legalizing and taxing daily fantasy sports (DFS).  The timing for the bill could be particularly timely depending on how the Supreme Court decides to rule on the Professional and Amateur Sports Protection Act (PASPA), which currently prohibits sports betting across the country.  As we have previously covered, the issue is still pending with the Supreme Court, though many states are hopeful for a decision by mid-March. Senator Eileen Donoghue, the initiator of bill…
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DraftKings and FanDuel Once Again Fight Back Against Lawsuit in Indiana

On January 16, 2017, FanDuel, Inc. and DraftKings, Inc. once again argued their websites do not violate Indiana’s right of publicity statute. As we have previously covered in May 2017, a group of 3,000 college athletes, led by former Northern Illinois University football players Akeem Daniels and Cameron Stingily, and former Indiana University football player Nicholas Stoner, bought a suit against DraftKings and FanDuel. The suit alleged that FanDuel and DraftKings were profiting from the use of the students athletes names, images, likenesses, and…
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Cloud Computing Patent Suit Claims Latest Victim: FanDuel

On January 11, 2018, PersonalWeb Technologies, LLC  sued FanDuel, Inc. for infringing five of PersonalWeb’s cloud computing patents. Cloud computing, also known as “the cloud,” is the delivery of on-demand computing resources in everything from applications to data center, sent over the internet on a pay-for-use basis. In the complaint, PersonalWeb alleges that FanDuel’s website uses PersonalWeb’s patented material for the manufacture, use, sale, importation, offer of services, and the distribution of its webpage content. More specifically, PersonalWeb claims that FanDuel illegally uses: (1)…
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New York State Collects $3 Million from Legal Fantasy Sports

On January 10, 2017, at a hearing, Peter Schoenke, chairman of the Fantasy Sports Trade Association (FSTA), told the New York State Racing and Wagering Committee that New York State would receive more than $3 million in tax revenue generated between January and November 2017, from daily sports fantasy operations. The $3 million is just an estimate and is expected to increase considering figures from December 2017 have yet to be finalized. The object of the hearing was to review the Daily…
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DraftKings and FanDuel Agree to Pay $2.6 Million to End Massachusetts Attorney General Investigation

On September 7, 2017, DraftKings and FanDuel, two daily fantasy sports platforms, agreed to pay $2.6 million to settle the Massachusetts investigation into their unfair and deceptive practices. The Massachusetts Attorney General’s Office did not state what the violations were, but the fines are the result of a 2015 investigation into the two companies’ business operations. In its 2015 investigation the Attorney General’s Office noted that consumers did not have adequate protections from the websites’ operators and more regulation was needed. This led to the…
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Suit Claiming Daily Fantasy Sports Law is Unconstitutional Continues

A group of citizens’ suit against the New York Attorney General and New York Gambling Commission was allowed to continue after a New York Judge denied the defendants’ motion to dismiss the case. The plaintiffs, a group that claims they are victims of gambling and are opposed to the proliferation of gambling, claimed the law legalizing daily fantasy sports is in violation of New York State’s constitutional prohibition on gambling expansion. The group of citizens claimed that the law allowing daily fantasy sports to…
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Delaware Becomes Number 14 in Legalizing Daily Fantasy Sports

Delaware Governor John Carney signed House Bill 249, making Delaware the latest state to legalize daily fantasy sports. Delaware became the fourteenth state to formally legalize the activity and the fourth state this year. The bill classifies daily fantasy sports as games of skill, rather than gambling, and will take effect before the start of the upcoming football season. The law attaches several regulations to the online fantasy sports. An operator, such as FanDuel and DraftKings, will have to apply for a license and pay…
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