Citigroup to Block New Yorkers’ Payments to DraftKings, FanDuel

On February 5, 2016, a week after a major payment processor completely backed out of the daily fantasy sports (DFS) market, Citigroup announced that it will begin blocking its New York residents’ credit and debit card payments on the websites of DraftKings, Inc. and FanDuel, Inc. The two companies are the current DFS industry leaders.

Since insider trading claims were alleged against DraftKings and FanDuel in October 2015, a national debate has arisen questioning whether DFS is legal on a state-to-state basis. Each state has …

February 9, 2016 NCAA

NCAA to Review Instant Replay, Targeting Rules in Football

The National Collegiate Athletic Association announced on Thursday, February 4, 2016, that it intends to review certain rules to increase and promote football safety next season. The proposed rule changed will be analyzed by the NCAA Football Rules Committee during its upcoming meeting, scheduled for February 9-11. According to the NCAA, the committee will primarily be concerned with discussing potential rule changes to promote the improvement of health and safety in the sport of football – a wise stance to take as the wave of …

February 8, 2016 Concussions / Litigation / NFL

Riddell Concussion Update: Helmet Company Thrown Back into NFL Suit

Between January 27 and February 3, 2016, US District Judge Anita B. Brody handed down two new orders in the seemingly never-ending NFL concussion suit. The first decision was actually a reversal of one of Judge Brody’s previous ones, turning over her December 2015 decision to sever claims against helmet-maker Riddell, Inc., who is being targeted by the former players in the suit for making an inferior work product that caused, or at least did not properly prevent, concussion and other head injuries on the …

February 8, 2016 Fantasy Sports

A Change of Pace: Rhode Island AG Finds Daily Fantasy Sports Legal

Whether daily fantasy sports (DFS) are legal is an issue that has been debated nationally since October 2015, when DFS industry leaders DraftKings, Inc. and FanDuel, Inc. were accused of engaging in insider trading. On February 4, 2016, Rhode Island Attorney General Peter Kilmartin released an advisory opinion concluding that DFS is likely to be found legal in a state court.

Under current law in many states, DFS wagering arguably constitutes “unlawful gambling.” Since October 2015, state attorney generals across the country have been …

February 6, 2016 Fantasy Sports

Class Actions v. DraftKings, FanDuel to be Consolidated in Massachusetts

Following the alleged October 2015 insider trading scandal involving daily fantasy sports (DFS) industry giants DraftKings, Inc. and FanDuel, Inc., a slew of consumer-based class actions were filed against the two companies.

In December 2015, DraftKings and FanDuel agreed with the plaintiffs that the cases should be consolidated in a single jurisdiction. Both companies argued before the Judicial Panel on Multidistrict Litigation that the consolidation should occur within the U.S. District Court of Massachusetts, where DraftKings is headquartered.

The Panel ultimately agreed with DraftKings and …

February 6, 2016 Intellectual Property, Copyright, and Trademark

Insurers Refute Defense Obligations in Sports Memorabilia IP Claims

On January 29, 2015, insurers West Bend Mutual Insurance Co. and Grinnell Mutual Reinsurance Co., told a Wisconsin federal court that they are not liable to defend sports memorabilia retailers, Waukesha Sportscards and AW Artworks LLC, in a copyright suit alleging that the retailers sold merchandise featuring unlicensed photographs. The insurers argued that their policies cover copyright in advertisement claims but do not extend to the copyright infringement issues addressed in the action.

The infringement suit against the retailers was initially filed back in June …

February 5, 2016 Litigation / MLB

Judge Rules Baseball Game Reports Must be Turned Over

On Friday, January 29, 2016, California District Judge Joseph Spero ordered Major League Baseball to disclose game reports in minor leaguers’ proposed class action suit. The players have alleged that the MLB conspired with its 30 member teams to suppress the wages they earned. The players sought access to the game reports to show the MLB did not keep formal time records of when they worked. In response, the league argued the game reports would not be able to prove anything and therefore had no …

February 5, 2016 Fantasy Sports

Indiana Bill to Legalize Daily Fantasy Sports Passes in State Senate

A bill to expressly legalize daily fantasy sports (DFS) in Indiana was passed by the state Senate on February 3, 2016. The bill was passed with ease, and it will now move before the Indiana House of Representatives, where it must survive another voting round before becoming official law.

The Indiana bill follows an alleged September 2015 insider trading scandal between DFS industry leaders DraftKings, Inc. and FanDuel, Inc. The scandal sparked a national debate questioning the legality of online DFS betting.

Under the definitions …

February 4, 2016 Celebrities / Litigation

Criminal Case Against Bill Cosby Moves Forward

On February 3, 2016, in Norristown Pennsylvania, a judge denied Bill Cosby’s motion to dismiss criminal charges against him. The newly elected Montgomery County District Attorney, Kevin Steele, has filed three felony charges of second-degree aggravated indecent assault based upon the allegations from Andrea Constand. She claims she was sexually assaulted by Cosby in 2004. According to an attorney from Toland Law, if Cosby is convicted he can face up to 10 years in prison and along with civil fines in State of Pennsylvania.…

February 4, 2016 Concussions / Litigation / NHL

Retired Players Urge Court to Continue Discovery in NHL Concussion Suit

On Tuesday, February 2, 2016, former hockey players in the multidistrict litigation concussion suit filed a memorandum in opposition to the NHL’s motion to stay discovery. The league’s motion was filed in January, seeking a stay until its 2014 motion to dismiss is ruled on, arguing it has complied with all discovery requests and spent millions of dollars in what may potentially end up being extraneous spending if the suit is tossed.

Players are arguing that the NHL’s sudden attempt at halting discovery is …

Sports and Entertainment Law Insider™

LATEST INSIGHTS