The DraftKings and FanDuel Litigations: What to Focus On as the Stakes Rise in FL and NY

Since the daily fantasy sports (DFS) insider trading scandal made headlines in late-September 2015, DraftKings, Inc. and FanDuel, Inc., the two DFS industry leaders, have been served with dozens of federal lawsuits. This past week, some noise was made in the federal putative class action known as Gomez v. FanDuel, Inc. et al. Initially, DraftKings and FanDuel were the only defendants in the case, which was filed in the Southern District Court of Florida in October 2015. Yet, on November 21, 2015, the Gomez
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Upping the Ante in Fantasy Sports Litigation: NHL, NBA, MLB Added as Defendants in FL Action

Dozens of federal lawsuits have been filed against DraftKings, Inc. and FanDuel, Inc. since the insider trading scandal made news in September 2015.  By way of a substantial amendment to their complaint, the plaintiffs in a Florida action have added numerous additional defendants. This putative class action, known as Gomez v. FanDuel, Inc. et al, was filed in the Southern District Court of Florida on October 15, 2015.  The suit alleges state law negligence claims against DraftKings and FanDuel — the two industry…
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Daily Fantasy Sports in Massachusetts: AG Proposes Regulations Rather Than Prohibition

On Thursday November 19, 2015, Massachusetts Attorney General Maura Healey released proposed regulations for daily fantasy sports (DFS). The proposal follows New York Attorney General Eric Schneiderman’s decision to completely ban the two industry leaders— DraftKings and FanDuel — from accepting wagers from New York residents. Unlike Schneiderman’s decision, which is currently being questioned in New York state courts, Healey proposes increased regulations rather than a complete prohibition. In a statement, Healey argued that the DFS industry “cries out for transparency and robust consumer protection.”…
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FanDuel to Cease Operations in New York Until Hearing on Nov. 25

The pace of the game is moving quickly in the dispute between New York Attorney General Eric Schneiderman and daily fantasy sports (“DFS”) industry leaders DraftKings, Inc. and FanDuel, Inc. As for the latest news, FanDuel has elected to suspend its New York operations until the November 25th emergency hearing. Following a month-long investigation, Schneiderman notified DraftKings and FanDuel on November 10, 2015 of his decision to prohibit the companies from accepting New Yorkers’ DFS wagers. Both companies decided to challenge Schneiderman’s decision by…
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DraftKings, FanDuel Temporary Restraining Order Requests Denied, Preliminary Injunction Hearings Fast-Tracked

On Monday November 16, 2015, daily fantasy sports (DFS) giants DraftKings, Inc. and FanDuel, Inc. requested temporary restraining orders in their individual state court actions against N.Y. Attorney General Eric Schneiderman. Those requests were denied by Justice Manuel Mendez. The underlying lawsuits were filed by DraftKings and FanDuel in response to Scheiderman’s November 10, 2015 decision, in which Schneiderman ordered the companies to cease and desist from accepting DFS wagers from New York residents. The individual actions of both plaintiffs request injunctive relief —…
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DraftKings Files for Temporary Restraining Order and New NY Legislation Proposed

Monday, November 16, 2015 saw a lot of action regarding the ongoing daily fantasy sports (DFS) controversy in New York State. On November 10, 2015, following a month-long investigation into the operations of DFS industry leaders DraftKings, Inc. and FanDuel, Inc., N.Y. Attorney General Eric Schneiderman notified the two companies of his decision to shut down their state-conducted business. By way of cease and desist letters, Schneiderman required the companies to refrain from accepting DFS wagers placed by New York servers. In response, both DraftKings
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FanDuel and DraftKings File Individual Actions v. NY Atty. Gen. Schneiderman

On Friday November 13, 2015, daily fantasy sports (DFS) industry leader DraftKings, Inc. filed a state court lawsuit against N.Y. Attorney General Eric Schneiderman. The action seeks an injunction precluding the AG from prohibiting DraftKings’ DFS operations in New York State. Later that day, FanDuel, Inc., DraftKings’ industry competitor, filed its own individual state court action requesting the same. The two actions were filed following AG Schneiderman’s notice to DraftKings and FanDuel to cease and desist from accepting DFS wagers from New York residents. Schneiderman…
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DraftKings Files Lawsuit Against NY Attorney General Over Fantasy Sports Ruling

On Friday November 13, 2015, daily fantasy sports (DFS) giant DraftKings, Inc. initiated a state court lawsuit against New York Attorney General Eric Schneiderman. The lawsuit was filed in response to Schneiderman’s November 10, 2015 ruling, which required DraftKings and FanDuel, Inc. (DraftKing’s industry competitor) to cease and desist from accepting DFS wagers from New York State residents. The AG’s ruling implicated only DraftKings and FanDuel, although several other DFS companies exist. DraftKings’ lawsuit seeks to preclude New York from halting the company’s business in…
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Menendez and Pallone of NJ Renew Request for FTC Action in Fantasy Sports

Following the September 2015 daily fantasy sports (DFS) scandal, U.S. Senator Robert Menendez (D-NJ) and House Representative Frank Pallone, Jr. (D-NJ) sent a letter to the Federal Trade Commission requesting an investigation of DFS industry leaders DraftKings, Inc. and FanDuel, Inc. The FTC’s response letter stated that the Commission believed no new regulations or legislation were necessary. On Tuesday November 10, 2015, Menendez and Pallone sent the FTC an additional letter renewing their request for federal action.  The date of the letter was most likely…
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New York Shuts the Book on Daily Fantasy Sports: AG Schneiderman Rules Activities of DraftKings, FanDuel Illegal

Forget to set your daily fantasy sports lineup in New York? This will no longer be a problem for you. Following the September 2015 daily fantasy sports (DFS) scandal, both state and federal authorities began investigating the business operations of industry leaders DraftKings, Inc. and FanDuel, Inc. The scandal stems from the acts of a DraftKings employee, Ethan Haskell, who used inside data to win $350,000 on FanDuel’s website. New York Attorney General Eric Schneiderman initiated an investigation into the business operations of DraftKings and…
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