Category Archives: Fantasy Sports

Indiana Bill to Legalize Daily Fantasy Sports Passes in State Senate

A bill to expressly legalize daily fantasy sports (DFS) in Indiana was passed by the state Senate on February 3, 2016. The bill was passed with ease, and it will now move before the Indiana House of Representatives, where it must survive another voting round before becoming official law. The Indiana bill follows an alleged September 2015 insider trading scandal between DFS industry leaders DraftKings, Inc. and FanDuel, Inc. The scandal sparked a national debate questioning the legality of online DFS betting. Under the definitions…

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Daily Fantasy Sports Payment Processor Vantiv Entertainment Cuts Ties with Industry

Daily fantasy sports (DFS) industry giant DraftKings, Inc. has acknowledged a recent report that Vantiv Entertainment Solutions, one of the company’s payment processors, is cutting ties. The report was made by the New York Times on January 29, 2016. Vantiv not only provides payment processing for DraftKings but also for a number of DFS companies, including FanDuel, Inc., DraftKings’ leading competitor. Vantiv plans to end its business with all DFS clients by February 29, 2016. The processing company’s decision to cut ties with DFS is…

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Proposed Class Action Lawsuit Filed in Oregon Against DraftKings, FanDuel

Since news of the alleged insider trading scandal broke in October 2015, daily fantasy sports (DFS) industry leaders DraftKings, Inc. and FanDuel, Inc. have been served with dozens of proposed federal class actions. The cases are consumer-based actions filed in jurisdictions throughout the country by former and current users of the companies’ DFS betting websites. On January 25, 2016, Oregon joined the mix, with a class action filed by named plaintiff Brandon Peck. Peck claims DFS wagering violates Oregon state law, which defines illegal gambling…

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Action in Daily Fantasy Sports Controversy Continues: DraftKings Changes User Rules and IL AG Files Motion to Dismiss

Action in the daily fantasy sports (DFS) controversy continued last week: DraftKings, Inc. changed its user rules, and DFS litigation faces a motion to dismiss from the Illinois attorney general. In October 2015, an insider trading scandal was alleged against DraftKings and FanDuel, Inc. — the industry leaders in DFS. Thereafter, the companies faced government scrutiny and a myriad of consumer-based class action lawsuits. Currently at issue in states across the country is whether DFS violates state and federal anti-gambling laws. In several class action…

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Steiner v. DraftKings, FanDuel Will Remain in Federal Court

On January 21, 2016, a Florida federal district court judge in the case of Steiner v. DraftKings, & FanDuel denied the plaintiff’s request to remand the action back to state court. The action claims the defendants are operating unlawful gambling businesses under Florida state law. The plaintiff, Nelson Steiner, originally filed the complaint in state court, under Florida’s Sixth Circuit Court. Defendants DraftKings, Inc. and FanDuel, Inc., industry leaders in online daily fantasy sports gambling, subsequently removed the case to federal court based on diversity…

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People Asked and the Texas AG Answered: Advisory Opinion Concludes Daily Fantasy Sports Illegal in Texas

On Tuesday January 19, 2016, Texas Attorney General Ken Paxton issued his advisory opinion on the legality of daily fantasy sports (DFS) under Texas law. In short, he did not apply the law to the DFS industry favorably. Since October 2015, daily fantasy sports — namely, industry leaders DraftKings, Inc. and FanDuel, Inc. — have been threatened nationally under federal statutes, individual state laws, and consumer lawsuits. The firestorm was sparked by news of scandal.  On September 27, 2015, a DraftKings employee inadvertently released company…

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Daily Fantasy Sports Industry Voices Concerns Over Mass. AG’s Regulations Proposal

On January 12, 2016, the State of Massachusetts held a public hearing on proposed regulations for daily fantasy sports gambling (DFS). The DFS industry voiced many concerns. In November 2015, Mass. Attorney General Maura Healey proposed consumer protection regulations. Rather than banning DFS altogether, the proposed regulations would seek to ensure transparency, truthful advertising, and the protection of the young. Such regulations would prohibit Massachusetts DFS players less than 21 years of age. The proposal also seeks to place a $1,000 monthly deposit limit…

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Mass. Gaming Commission: Daily Fantasy Sports May Still be Illegal Despite Regulation Proposal

On January 11, 2016, the Massachusetts Gaming Commission released a report questioning the legality of daily fantasy sports (DFS) under state laws. The report, called the “White Paper on Daily Fantasy Sports,” was issued the day before the public hearing on Mass. Attorney General Maura Healey’s proposed regulations. In November 2015, Healey proposed consumer protection regulations for DFS rather than banning companies’ operations altogether. In sum, the Commission argued that while regulations may protect consumers, they do not change the fact that DFS…

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DraftKings, FanDuel Granted Stay of Preliminary Injunction in New York

News first broke from ESPN’s Darren Rovell that the New York Appellate Court decided to grant DraftKings and FanDuel their motions to stay preliminary injunction pending appeal. The decision was issued Monday January 11, 2016. DraftKings and FanDuel—industry leaders in daily fantasy sports (DFS) — have been involved in litigation with New York Attorney General Eric Scneiderman since November 2015. In October 2015, Schneiderman sent the companies cease and desist letters, claiming that the companies must terminate business operations in New York because DFS…

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Not So Fast! FanDuel Argues Plaintiffs in California Lawsuit Agreed to Arbitrate Disputes

In Delgado v. Fanduel, Inc., FanDuel argued in motion papers on Monday that the plaintiffs cannot escape the arbitration clause in the company’s user agreement. The case is a proposed false advertising class action filed in the U.S. District Court for the Central District of California in December 2015. FanDuel, alongside its rival, DraftKings, Inc., is a leader in the booming daily fantasy sports (DFS) industry. Following an alleged insider trading scandal in late-September 2015, FanDuel and DraftKings were forced to face dozens of…

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