Category Archives: Fantasy Sports

Legalizing Fantasy Sports May Wreck Tribal Relations

While lobbying for legislation has proven to be the path for Daily Fantasy Sports (DFS), a new twist has been added to the story. On April 18, 2016, Connecticut Attorney General George Jepson released an opinion that could severely jeopardize, or complicate, oncoming DFS legislation. In an opinion letter to Connecticut senators, Jepson stated, “There is a substantial risk that the passage of such legislation could jeopardize the State’s revenue-sharing arrangements with the Tribes.” Connecticut had proposed legalizing fantasy sports with an 8.75 percent

Continue Reading....

Fantasy Sports Considered Illegal Gambling by Two More Attorneys General

Alabama and Tennessee can be added to the list of states with attorneys general who do not believe daily fantasy sports are legal under their state law. On April 5, 2016, the Alabama Attorney General issued a press release reporting he delivered cease and desist letters to FanDuel and Draft Kings. The two leagues have until May 1, 2016 to stop operating in Alabama. According the Attorney General Luther Strange, “paid daily fantasy sports contests are in fact illegal gambling under Alabama law.” Tennessee Attorney

Continue Reading....

Fantasy Sports Suspend College Sports Contests

Daily fantasy sports companies DraftKings and FanDuel have voluntarily agreed to suspend DFS contests involving college sports. This agreement arises after months of discussions between the fantasy sports companies, the NCAA, its member schools, and various state legislatures. As the March Madness Tournament winds down, the agreement to suspend fantasy college contests will go into effect after tonight’s championship game. DraftKings and FanDuel have been battling over the legality of their fantasy sports contests for quite some time. For example, DraftKings and FanDuel recently agreed…

Continue Reading....

A Wait-and-See Approach: Federal Prosecutors Waiting to See What States Do With Fantasy Sports

The game of chance versus game of skill debate is nothing new in the realm of the daily fantasy sports industry. But on Friday, April 1, 2016, the U.S. Attorney for the Eastern District of Pennsylvania, Zane Memeger, indicated his office’s intent to see how states resolve the question of whether or not companies like DraftKings or FanDuel are violating anti-gambling laws: From the Department of Justice’s perspective, we’re waiting to see what the states are going to do with fantasy sports, in terms of…

Continue Reading....

DraftKings and FanDuel Agree to Stop Paid Contests in New York

A major change has been made in the New York world of fantasy sports. New York Attorney General Eric Schneiderman made an agreement with DraftKings and FanDuel in which the companies agree to immediately stop operating paid contests in New York. In November, Schneiderman sent cease and desist letters to the fantasy sports companies alleging the contests are games of chance and constitute illegal gambling under New York law. A preliminary injunction was granted against the companies in December; however, an immediate appeal stayed the

Continue Reading....

DraftKings Taking Texas to Court Following AG’s Opinion Letter

On Friday March 4, 2016, daily fantasy sports giant DraftKings filed suit in Texas state court against Texas’ attorney general over an opinion letter released in January by AG Ken Paxton declaring DFS constitutes illegal gambling. The filing was initiated shortly after the attorney general’s office announced it had reached a settlement with DraftKings’ ultra-competitor FanDuel to cease operations of paid entries in Texas. In a 43-page petition, DraftKings asked the court for declaratory judgment, seeking it to rule that DFS games are one of…

Continue Reading....

FanDuel and Texas Attorney General Reach Settlement

Pursuant to a settlement reached on Friday, March 4, 2016, daily fantasy sports giant FanDuel will no longer be accepting paid entries in Texas starting in May. However, if a Texas judge eventually rules that paid fantasy sports are legal, or if Texas laws governing fantasy sports changes, FanDuel will be able to resume accepting paid entries. In January, the Texas Attorney General’s Office released an opinion concluding that daily fantasy sports constitute gambling under Texas law. FanDuel considered bringing suit to have a court…

Continue Reading....

Citigroup to Block New Yorkers’ Payments to DraftKings, FanDuel

On February 5, 2016, a week after a major payment processor completely backed out of the daily fantasy sports (DFS) market, Citigroup announced that it will begin blocking its New York residents’ credit and debit card payments on the websites of DraftKings, Inc. and FanDuel, Inc. The two companies are the current DFS industry leaders. Since insider trading claims were alleged against DraftKings and FanDuel in October 2015, a national debate has arisen questioning whether DFS is legal on a state-to-state basis. Each state has…

Continue Reading....

A Change of Pace: Rhode Island AG Finds Daily Fantasy Sports Legal

Whether daily fantasy sports (DFS) are legal is an issue that has been debated nationally since October 2015, when DFS industry leaders DraftKings, Inc. and FanDuel, Inc. were accused of engaging in insider trading. On February 4, 2016, Rhode Island Attorney General Peter Kilmartin released an advisory opinion concluding that DFS is likely to be found legal in a state court. Under current law in many states, DFS wagering arguably constitutes “unlawful gambling.” Since October 2015, state attorney generals across the country have been…

Continue Reading....

Class Actions v. DraftKings, FanDuel to be Consolidated in Massachusetts

Following the alleged October 2015 insider trading scandal involving daily fantasy sports (DFS) industry giants DraftKings, Inc. and FanDuel, Inc., a slew of consumer-based class actions were filed against the two companies. In December 2015, DraftKings and FanDuel agreed with the plaintiffs that the cases should be consolidated in a single jurisdiction. Both companies argued before the Judicial Panel on Multidistrict Litigation that the consolidation should occur within the U.S. District Court of Massachusetts, where DraftKings is headquartered. The Panel ultimately agreed with DraftKings and…

Continue Reading....