DraftKings Seeks Declaration that Daily Fantasy Sports Contests are Legal in Texas

On April 16, 2018, DraftKings sought a declaratory judgment in Texas state court against Texas Attorney General, Ken Paxton. According to the petition, Paxton’s actions have sought to eliminate daily fantasy sports in Texas, and now, DraftKings is seeking a declaratory judgment to determine if daily sports are legal under Texas state law. DraftKings argued that the court need not look further than Paxton’s treatment of DraftKings’ main competitor, FanDuel, to see that Paxton’s “actions pose direct and particularized harm to DraftKings.” In their…
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Texas Court Allows Clinic’s ERISA Suit Against NFL to Stand

On March 27, 2018, a Texas court partially granted and partially denied a four-time amended complaint in a suit filed by medical clinic, Advanced Physicians SC (AP), against Cigna Health and Life Insurance Company, Cigna Healthcare Management Inc., Connecticut General life Insurance Company, Great-West Healthcare-Cigna, and the NFL Player Insurance Plan. From the lawsuit, AP sought compensation under the Employee Retirement Income Security Act, ERISA, for unpaid, but allegedly legitimate, claims for previous medical care rendered to retired NFL players and their families. According to…
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Deion Sanders Still Refuses to Cooperate in School Lunch Lawsuit

Deion Sanders once again faces sanctions due to his failure to participate in court proceedings surrounding the suit about his alleged misuse of subsidized lunch funds. As we have previously reported, whistleblower Lawrence Smith claimed that Prime Time Prep Academy, a charter school co-founded by Sanders and D.L. Wallace, applied for, and received, nearly $1 million under the National School Lunch Program and Summer Food Service Program, with no evidence that the money was used for school lunches or for the benefit of needy…
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Sanders Requests Second Chance in School Lunch Lawsuit

Former professional football star Deion Sanders has asked a federal court in Texas to reject a default judgment against him in a lawsuit alleging the misuse of subsidized lunch funds at Prime Time Prep Academy, a charter school co-founded by Sanders and D.L. Wallace. The default judgment was entered because of the failure of Sanders’ attorney, John D. Nation, to respond in a timely fashion to an amended petition by plaintiff Lawrence Smith. Nation claims he received a copy of the amended petition in question,…
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Quick Fix: Judge Corrects Ruling and Orders Insurer to Repay $550,000 to Yahoo Over Cancelled NCAA Contest

On Thursday, March 24, 2016, a Texas federal judge ordered insurer SCA Promotions Inc. to repay $550,000 to Yahoo, adjusting a ruling in November entitling Yahoo Inc. to recover half of what it paid SCA under an agreement pertaining to an NCAA March Madness contest. It is unclear what the reason behind the correction was due to confidentiality agreements, which were also the subject of dispute earlier in the litigation. SCA originally brought a breach of contract suit against Yahoo after Yahoo cancelled an…
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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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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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Illinois and Texas: The Latest in the Daily Fantasy Sports Legality Issue

As daily fantasy sports (DFS) litigation is on standby in New York (pending is the expedited appellate hearing scheduled for January 4, 2016), the situation is heating up in Illinois and Texas. Sparked by an alleged September 2015 insider trading scandal between DFS industry leaders DraftKings, Inc. and FanDuel, Inc., the legality of DFS has become a national issue among the country’s individual states. Under the Unlawful Internet Gambling Enforcement Act (2006), states have the individual and independent right to determine whether a subject activity…
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Who’s Next? Patent Holder Targets NFL in Latest Lawsuit

Virtual Gaming Technologies LLC (VGT) is no stranger to filing infringement suits against fantasy sports operators. This week, the patent holder has filed lawsuits against FanDuel, DraftKings, Fox Sports, ESPN, Draftpot, and DraftDay. On November 5, 2015, the company targeted a new defendant—the National Football League. In its complaint, filed in the Eastern District of Texas, the company alleges that the NFL Interactive Gaming Platform infringes upon its patents which similarly offer live scoring in relation to player performance. The plaintiff patent holder…
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