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 …

November 11, 2015 Fantasy Sports

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 …

November 6, 2015 Fantasy Sports

Here We Go Again: DraftKings, FanDuel Face Another Lawsuit

Since early-October, federal lawsuits have piled atop of daily fantasy sports (DFS) industry leaders DraftKings, Inc. and FanDuel, Inc. In total, there are now over 25 federal actions filed against the two companies. Most of the cases stem from allegations claiming the pair engaged in illegal gambling, unfair business practices, and insider trading. On November 2, 2015, however, a patent infringement case was filed in Texas against both DraftKings and FanDuel, in addition to Fox Sports.

The plaintiff in the patent cases is Virtual …

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 …