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 — …

November 6, 2015 Fantasy Sports

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 …

November 4, 2015 Fantasy Sports

Garcon v. FanDuel: What is FanDuel’s Liability and Why Wasn’t DraftKings Invited?

On Friday October 30, 2015, NFL wide receiver Pierre Garcon filed a putative class action against FanDuel, Inc., an industry leader in daily fantasy sports gambling (DFS). The lawsuit follows the recent avalanche of class actions filed against FanDuel and DraftKings, Inc. (another DFS industry giant). Unlike those cases, however, which pursue claims of insider trading and unfair business practices, Garcon’s action alleges a misappropriation of publicity rights.

Garcon’s complaint alleges that FanDuel misappropriated the publicity rights of the NFL’s offensive skill-positioned players (i.e. …

November 2, 2015 Fantasy Sports

Pierre Garcon v. FanDuel, Inc.: The Latest Class Action in Daily Fantasy Sports

The legal issues for the daily fantasy sports (DFS) industry continue to mount following the putative class action filed by Pierre Garcon, a NFL wide receiver for the Washington Redskins. After news of the DFS scandal broke in late-September 2015, in which industry leaders FanDuel, Inc. and DraftKings, Inc. were accused of insider trading, nearly a dozen federal class actions have been filed against the two companies.

Garcon’s action, which was filed on October 30, 2015, names only FanDuel, Inc. as a defendant. The complaint …

October 30, 2015 Fantasy Sports / Legislation

FanDuel CEO Calls for Legislative Regulations of Fantasy Sports

On Thursday October 29, 2015, in a letter to website users, FanDuel, Inc. CEO Nigel Eccles called for “formal” government regulation to govern daily fantasy sports (DFS).

Eccles’ letter comes following a month-long bombardment of class action lawsuits and negative press coverage against the two DFS industry leaders, FanDuel, Inc. and DraftKings, Inc. The legality of the companies’ business operations has been placed in question; namely, whether DraftKings and FanDuel engaged in insider trading, unfair practices, and illegal gambling operations is at issue. The two …

October 26, 2015 Fantasy Sports

House Rep. Frank Pallone, Jr. Requests Info From DraftKings, Fanduel

In September 2015, before the DraftKings-FanDuel scandal had even occurred, House Rep. Frank Pallone, Jr. (D-NJ) voiced his concerns about the two daily fantasy sports betting (DFS) websites, which rapidly became billion-dollar industries over the last year. He urged the U.S. Congress for a congressional hearing into the legality of DFS.

In a September 14, 2015 letter to House Republicans, Pallone stated that DFS “sites are enormously popular, arguably central to the fans’ experience, and professional leagues are seeing the enormous profits as a result.” …

October 24, 2015 Fantasy Sports

DraftKings Hires Former Mass. AG as New Regulations Appear Imminent

In the weeks following the DraftKings-FanDuel daily fantasy sports betting (DFS) scandal, the two companies have maintained their business directions, continuing operations in 44 U.S. states. On Monday October 19, 2015, however, DraftKings confirmed that it hired former Massachusetts attorney General Martha Coakley as an outside legal advisor on legislative and regulatory matters.

Massachusetts is a state that, in the opinion of many legal commentators, is firmly supportive of DFS operations as they currently operate. Coakley was the attorney general for Massachusetts in 2011 …

October 22, 2015 Fantasy Sports

Plaintiffs in Putative Class Actions v. DraftKings, FanDuel Seek NY Consolidation

Since news of the DraftKings insider-trading scandal broke in late September 2015, a total of 11 putative class actions have been filed against the company and its top competitor, FanDuel. The two companies offer daily fantasy sports betting (DFS) platforms to paying users, and the lawsuits have arisen from the websites’ alleged unfair practices and illegal activity.

As the cases against DraftKings and FanDuel pile up, at least 3 petitions have been filed with the U.S. Judicial Panel on Multidistrict Litigation requesting that the cases …

October 21, 2015 Fantasy Sports

Complaint Amended in Florida Federal Class Action v. DraftKings, FanDuel

A Florida federal class action has been the most recent lawsuit to join the blitz against daily fantasy sports (DFS) websites, FanDuel and DraftKings. Specifically, the Florida case, originally filed on October 15, 2015, alleged that the DFS sites permitted certain users, known as “shark bettors,” to unfairly run complex computer programs and algorithms, which utilize “elaborate statistical modeling and automated tools that can manage hundreds of entries at once and identify the weakest opponents.”

On October 16, 2015, the plaintiffs amended the original complaint…

October 20, 2015 Fantasy Sports

“Apex Predators” and “Shark Bettors,” Oh My! Florida Federal Class Action v. DraftKings, FanDuel Adds a Twist

As it now stands, DraftKings and FanDuel — daily fantasy sports gambling websites (DFS)— face over a half-dozen civil lawsuits in federal district courts since the insider trading scandal emerged in late September 2015. The most recent action was filed in a Florida federal court on October 15, 2015.

Like the lawsuits filed against DraftKings and FanDuel in states such as New York and Louisiana, the Florida lawsuit seeks certification for a class action. Under the complaint, the proposed plaintiff classes are “all individuals …