New Jersey Assembly Reaches Endzone with DFS Bill

On Monday, May 22, 2017, the New Jersey Assembly was able to advance a bill to the Senate that would regulate daily fantasy sports games in their state. Assembly Bill 3532 passed, following a 56-16 vote, with two members abstaining. The vote came just less than four months after unanimous approval by the Assembly’s Tourism, Gaming and the Arts Committee, and two months after an 8-3 approval by the Assembly Appropriations Committee. The bill would regulate all fantasy or simulated activities or contests that utilize…
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Refereeing Daily Fantasy Sports Industry: Missouri Becomes Sixth State to Pass Legislation

Amid ongoing Daily Fantasy Sports (DFS) scrutiny across the United States, Missouri lawmakers have passed a bill to legalize and regulate the industry. On Thursday, May 12, 2016, the Missouri House of Representatives signed onto the Missouri Senate’s version of the bill titled “Missouri Fantasy Sports Consumer Protection Act,” HB 1941, which now awaits approval by Governor Jay Nixon. Under the bill, DFS will be exempt from existing gambling law, regulated by the Missouri Gaming Commission, but operators will be required to obtain…
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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
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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…
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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…
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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…
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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…
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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…
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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…
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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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