Category Archives: Fantasy Sports

Cloud Computing Patent Suit Claims Latest Victim: FanDuel

On January 11, 2018, PersonalWeb Technologies, LLC  sued FanDuel, Inc. for infringing five of PersonalWeb’s cloud computing patents. Cloud computing, also known as “the cloud,” is the delivery of on-demand computing resources in everything from applications to data center, sent over the internet on a pay-for-use basis. In the complaint, PersonalWeb alleges that FanDuel’s website uses PersonalWeb’s patented material for the manufacture, use, sale, importation, offer of services, and the distribution of its webpage content. More specifically, PersonalWeb claims that FanDuel illegally uses: (1)…

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New York State Collects $3 Million from Legal Fantasy Sports

On January 10, 2017, at a hearing, Peter Schoenke, chairman of the Fantasy Sports Trade Association (FSTA), told the New York State Racing and Wagering Committee that New York State would receive more than $3 million in tax revenue generated between January and November 2017, from daily sports fantasy operations. The $3 million is just an estimate and is expected to increase considering figures from December 2017 have yet to be finalized. The object of the hearing was to review the Daily…

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DraftKings and FanDuel Agree to Pay $2.6 Million to End Massachusetts Attorney General Investigation

On September 7, 2017, DraftKings and FanDuel, two daily fantasy sports platforms, agreed to pay $2.6 million to settle the Massachusetts investigation into their unfair and deceptive practices. The Massachusetts Attorney General’s Office did not state what the violations were, but the fines are the result of a 2015 investigation into the two companies’ business operations. In its 2015 investigation the Attorney General’s Office noted that consumers did not have adequate protections from the websites’ operators and more regulation was needed. This led to the…

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Suit Claiming Daily Fantasy Sports Law is Unconstitutional Continues

A group of citizens’ suit against the New York Attorney General and New York Gambling Commission was allowed to continue after a New York Judge denied the defendants’ motion to dismiss the case. The plaintiffs, a group that claims they are victims of gambling and are opposed to the proliferation of gambling, claimed the law legalizing daily fantasy sports is in violation of New York State’s constitutional prohibition on gambling expansion. The group of citizens claimed that the law allowing daily fantasy sports to…

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Delaware Becomes Number 14 in Legalizing Daily Fantasy Sports

Delaware Governor John Carney signed House Bill 249, making Delaware the latest state to legalize daily fantasy sports. Delaware became the fourteenth state to formally legalize the activity and the fourth state this year. The bill classifies daily fantasy sports as games of skill, rather than gambling, and will take effect before the start of the upcoming football season. The law attaches several regulations to the online fantasy sports. An operator, such as FanDuel and DraftKings, will have to apply for a license and pay…

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FTC Pressure Forces DFS Giants to Cancel Merger Plans

Last November, FanDuel and DraftKings announced their plan to merge, and sought to combine the two largest operators of paid fantasy daily sports. The agreement came amidst scrutiny from several state attorneys general and other regulators over the legality of daily fantasy sports. On July 13, 2017, the two daily fantasy sports giants announced they would no longer pursue their plan to join forces. The most recent announcement came after the FTC filed a lawsuit against DraftKings and FanDuel in June, saying the two…

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Update: Federal Judge Grants Temporary Restraining Order Blocking FanDuel DraftKings Merger

U.S. District Court Judge Ketanji Brown issued a temporary restraining order preventing DraftKings and FanDuel from completing their merger as the Federal Trade Commission (FTC) seeks a preliminary injunction. The proposed merger would keep both websites operational. DraftKings CEO Jason Robbins will be the CEO of the merged company and FanDuel CEO Nigel Eccles will become Chairman of the Board. Even though both companies will still be operating and consumers will have a choice of which to use, the FTC argues the merger will…

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FTC Seeks Injunction on FanDuel and DraftKings Merger

The Federal Trade Commission (FTC) and the attorney generals for California and the District of Columbia will file a complaint to prevent the merger of FanDuel and DraftKings while the FTC is reviewing the merger process. FanDuel and DraftKings make up 95 percent of the daily fantasy sports market. The FTC argues the merger would “deprive customers of the substantial benefits of direct competition.” The companies announced the merger in November 2016, in large part to cut their legal bills. At the time, the…

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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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Five College Baseball Players Suspended for Involvement in Fantasy Sports

Student-athletes need to think twice before accepting their fantasy football league invitations this year. Five players from the University of Richmond’s baseball team have learned this lesson the hard way. The five effected players have begun the 2017 college baseball season suspended by the NCAA for their involvement in a fantasy football league. The NCAA rules state: “You are not eligible to compete if you knowingly participate in any sports wagering activity that involves intercollegiate, amateur or professional athletics, through a bookmaker, a parlay card…

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