“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 …

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Class Action Filed Against DraftKings, Fan Duel

On Thursday, October 8, 2015, Fantasy Sports giants DraftKings and FandDuel were hit with a class action lawsuit on the heels of a data leak scandal.

The lawsuit — Johnson v. Fanduel, Inc. et al — was filed by Adam Johnson, a Kentucky resident, in the United States District Court for the Southern District of New York. The complaint makes seven different claims against DraftKings and FanDuel, including fraud and misrepresentation, violation of the New York False Advertising Act, and civil conspiracy, among others.…

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DraftKings and FanDuel Look to Change Internal Regulations Following Scandal

This past week, reports surfaced that an employee of DraftKings, a fantasy sports betting company, used internal information to win $350,000 on the competitor website, FanDuel.  According to statements made by both companies on Wednesday October 5, 2015, the billion-dollar startups will now aim to better their internal regulations.

The fantasy sports betting industry has surged over the last year, with DraftKings and FanDuel leading the way.  Industry consultant Eilers Research projected that such companies will generate around $3.72 billion in entry fees and $370 …

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NY Attorney General To Investigate Fantasy Websites

On Tuesday, October 6, 2015, New York Attorney General Eric Schneiderman began an investigation into DraftKings and FanDuel, the two largest daily fantasy sports websites. The investigation comes as a result of news that the two companies allow their employees, many of which have information not available to the public, to play each other and win large payouts.

Schneiderman sent letters to the CEOs of both companies requesting the employee names and job titles, as well as other information, such as pricing algorithms. The letters …

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Massachusetts Attorney General To Review Legality of Fantasy Giant DraftKings

The legality of DraftKings Inc., a Boston-based fantasy sports website, will be reviewed by the attorney general of its home state. Massachusetts Attorney General Maura Healey, a well-known supporter of strict casino regulations, was asked about the legality of DraftKings during an interview with State House News Service. Healey told the News Service, “The point is this: This is a new industry. It’s something that we’re reviewing, and we’ll learn more about it.”

While fantasy sports have been around for decades, daily fantasy websites, …

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Bittersweet Victory: DraftKings Reaches Deal With ESPN Without Any Equity Investment

On Wednesday, June 24, fantasy sports company DraftKings Inc. reached a promotional partnership with ESPN.  DraftKings had reportedly been in talks with Walt Disney Co., ESPN’s parent company, for an equity investment earlier this year.  According to the reports from April, Disney was close to investing $250 million into DraftKings, an amount that would value the company at roughly $900 million.

Although neither company would discuss how much the ESPN marketing deal was actually worth, the agreement makes DraftKings the “official fantasy sports offering” on …

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