Steiner v. DraftKings, FanDuel Will Remain in Federal Court

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On January 21, 2016, a Florida federal district court judge in the case of Steiner v. DraftKings, & FanDuel denied the plaintiff’s request to remand the action back to state court. The action claims the defendants are operating unlawful gambling businesses under Florida state law.

The plaintiff, Nelson Steiner, originally filed the complaint in state court, under Florida’s Sixth Circuit Court. Defendants DraftKings, Inc. and FanDuel, Inc., industry leaders in online daily fantasy sports gambling, subsequently removed the case to federal court based on diversity jurisdiction.

Steiner’s motion to remand back to state court claimed there is no diversity jurisdiction because he brought the action on behalf of the State of Florida—“the real party in interest.” U.S. District Judge Steven D. Merryday disagreed, however, ruling that the case shall remain in federal court. His order stated: “Steiner, a citizen of Florida, is diverse from DraftKings and FanDuel because DraftKings is a Delaware corporation with a principal place of business in Massachusetts and FanDuel is a Delaware citizen with a principal place of business in New York.”

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