Maryland Adopts Daily Fantasy Sports Regulations

Maryland’s fashionably late adoption of daily fantasy sports regulations went into effect on January 2, 2017, providing several consumer safeguards  in the industry. State regulations surrounding the industry came flooding in after fantasy sport kingpins DraftKings Inc. and FanDuel Inc. faced a number of class action suits in 2015. Maryland’s regulations appear much less restrictive than most, however, in that they do not require operators to shell out a high registration fee (Virginia requires a whopping $50,000), and they set its minimum age at 18…
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Daily Fantasy Sports Companies Investing Big Money in Lobbying

After the first two weeks of NFL football in 2016, once thing is apparent; there are far fewer commercials advertising for daily fantasy sports. The decline in the advertising of daily fantasy sports companies makes sense given the rising costs other factors associated with the legality of these sites. FanDuel Inc. and DraftKings Inc., the largest daily fantasy players, are fighting for their existence on a state-by-state basis. Daily fantasy sports companies are pushing to be classified as a “game of skill” instead of a…
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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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NY Attn. Gen. Schneiderman Amends Complaints v. DraftKings, FanDuel on Eve of Appellate Hearing

Following the New York trial court’s ruling to grant NY Attorney General Eric Schneiderman’s preliminary injunction motion, DraftKings and FanDuel — the industry leaders in daily fantasy sports (DFS) — immediately appealed. The appellate division granted the companies an interim stay of the preliminary injunction, as well as an expedited hearing date for the appeal, which was scheduled for January 4, 2016. At issue in New York is whether DFS constitutes unlawful gambling under current state laws. AG Schneiderman believes it does. The…
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Sports Legislation and Regulation in 2016: The Hot Topics (Part I)

In the realm of sports law, 2016 will provide some interesting developments as to legislation and regulation. First, many states are likely to take a stance on daily fantasy sports in 2016 — both in the courts and via state legislation. Second, the FCC will rule on “linear” online video platforms that offer sports streaming. Third, the Washington Redskins’ challenge to the cancellation of its trademark registration will face a federal bill proposing to force a name change. And finally, the bill proposal seeking to…
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Anyone Want to Bet How New York Courts Will Rule on Daily Fantasy Sports? The Volley in State Court Continues

The issue whether daily fantasy sports (DFS) is illegal in New York State will continue its back-and-forth volley following an exciting day in state court on Friday, December 11, 2015. The actions filed in New York are related to the national debate on the legality of DFS — opponents in many states argue that DFS constitutes illegal gambling. On November 10, 2015, New York Attorney General Eric Schneiderman sent DraftKings, Inc. and FanDuel, Inc. — the two industry leaders of DFS — cease and desist
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Fantasy Sports Are Gambling? NY Judge Says Yes, Orders DFS Sites to Stop Operating in the Empire State

New York Judge Manuel J. Mandez granted preliminary injunctions against Daily Fantasy Sports sites DraftKings and FanDuel on Friday December 11, 2015. The injunctions were sought by New York Attorney General Eric Schneiderman, and the court order will temporarily shut down the DFS sites throughout the site, at least until the conclusion of litigation on the matter is over. In essence, Judge Mandez has declared that the DFS sites are forms of illegal gambling under New York law. According to the order, DraftKings and FanDuel…
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Attempts to Hurdle the Court: DraftKings and FanDuel Meet With NY Lawmakers

On December 8, 2015, representatives from the daily fantasy sports (DFS) industry met at a joint hearing in Albany with New York lawmakers. The companies argued their positions on DFS before the New York Assembly standing committees on Racing and Wagering and Consumer Affairs and Protection. DraftKings, Inc. and FanDuel, Inc. — DFS industry leaders — are awaiting a New York trial court decision on whether to enjoin the companies’ business operations. In November 2015, N.Y. Attorney General Eric Schneiderman filed a preliminary injunction motion,…
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Schneiderman v. DraftKings, FanDuel: Decision on NY Preliminary Injunction Motions Coming “Very Soon”

A New York trial judge said his decision will come “very soon” in the state court lawsuits between N.Y. Attorney General Eric Scneiderman and daily fantasy sports (DFS) industry leaders DraftKings, Inc. and FanDuel, Inc. On November 10, 2015, Schneiderman sent DraftKings and FanDuel cease and desist letters, ordering the companies to refrain from accepting New Yorkers’ DFS wagers. The AG claims the companies’ DFS operations constitute illegal gambling under New York law. Following the letters, all three parties — DraftKings, FanDuel, and Schneiderman —…
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Fox Sports Latest to be Hit with Patent Infringement Suit

Virtual Gaming Technologies LLC filed a complaint against Fox Sports in the Eastern District of Texas this past Monday, November 2, 2015, alleging patent infringements in regards to the technologies that make fantasy sports over the Internet a reality.  The lawsuit is one more in a list of similar allegations filed by the technology company against other fantasy websites, including DraftKings and FanDuel. The complaint alleges that Fox Sports is in violation of two issued patents for the use of and operation of its…
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