Massachusetts Bill Proposes Legalization of Daily Fantasy Sports Amid Pending Supreme Court Ruling

On February 14, 2018, Massachusetts Legislature introduced a bill aimed at legalizing and taxing daily fantasy sports (DFS).  The timing for the bill could be particularly timely depending on how the Supreme Court decides to rule on the Professional and Amateur Sports Protection Act (PASPA), which currently prohibits sports betting across the country.  As we have previously covered, the issue is still pending with the Supreme Court, though many states are hopeful for a decision by mid-March.

Senator Eileen Donoghue, the initiator of bill …

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NBA Calls for Legalization of Sports Betting

On January 24, 2018, the NBA’s Assistant General Counsel, Dan Spillane, testified in front of a New York State Senate committee and expressed the NBA’s support for a body of law that would legalize sports betting. Spillane said, “[w]e have studied these issues at length …[o]ur conclusion is that the time has come for a different approach that gives sports fans a safe and legal way to wager on sporting events while protecting the integrity of the underlying competitions.” Spillane’s testimony comes in stark …

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DraftKings and FanDuel Once Again Fight Back Against Lawsuit in Indiana

On January 16, 2017, FanDuel, Inc. and DraftKings, Inc. once again argued their websites do not violate Indiana’s right of publicity statute. As we have previously covered in May 2017, a group of 3,000 college athletes, led by former Northern Illinois University football players Akeem Daniels and Cameron Stingily, and former Indiana University football player Nicholas Stoner, bought a suit against DraftKings and FanDuel. The suit alleged that FanDuel and DraftKings were profiting from the use of the students athletes names, images, likenesses, and …

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New York State Collects $3 Million from Legal Fantasy Sports

On January 10, 2017, at a hearing, Peter Schoenke, chairman of the Fantasy Sports Trade Association (FSTA), told the New York State Racing and Wagering Committee that New York State would receive more than $3 million in tax revenue generated between January and November 2017, from daily sports fantasy operations. The $3 million is just an estimate and is expected to increase considering figures from December 2017 have yet to be finalized. The object of the hearing was to review the Daily …

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DraftKings and FanDuel Dodge Former College Athletes’ Likeness Suit

On September 29, 2017, an Indiana federal judge threw out a proposed class action brought by college athletes against DraftKings and FanDuel for allegedly profiting off the use of their names, images, and likenesses. The judge ruled that the college athletes’ claims were barred by exemptions to Indiana’s right-of-publicity law. The case was originally brought in Indiana state court by former Northern Illinois University football players Akeem Daniels and Cameron Stingily, and former Indiana University football player Nicholas Stoner on behalf of about 3,000 former …

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DraftKings and FanDuel Agree to Pay $2.6 Million to End Massachusetts Attorney General Investigation

On September 7, 2017, DraftKings and FanDuel, two daily fantasy sports platforms, agreed to pay $2.6 million to settle the Massachusetts investigation into their unfair and deceptive practices. The Massachusetts Attorney General’s Office did not state what the violations were, but the fines are the result of a 2015 investigation into the two companies’ business operations.

In its 2015 investigation the Attorney General’s Office noted that consumers did not have adequate protections from the websites’ operators and more regulation was needed. This led to the …

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Suit Claiming Daily Fantasy Sports Law is Unconstitutional Continues

A group of citizens’ suit against the New York Attorney General and New York Gambling Commission was allowed to continue after a New York Judge denied the defendants’ motion to dismiss the case. The plaintiffs, a group that claims they are victims of gambling and are opposed to the proliferation of gambling, claimed the law legalizing daily fantasy sports is in violation of New York State’s constitutional prohibition on gambling expansion.

The group of citizens claimed that the law allowing daily fantasy sports to …

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FTC Pressure Forces DFS Giants to Cancel Merger Plans

Last November, FanDuel and DraftKings announced their plan to merge, and sought to combine the two largest operators of paid fantasy daily sports. The agreement came amidst scrutiny from several state attorneys general and other regulators over the legality of daily fantasy sports. On July 13, 2017, the two daily fantasy sports giants announced they would no longer pursue their plan to join forces.

The most recent announcement came after the FTC filed a lawsuit against DraftKings and FanDuel in June, saying the two …

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Update: Federal Judge Grants Temporary Restraining Order Blocking FanDuel DraftKings Merger

U.S. District Court Judge Ketanji Brown issued a temporary restraining order preventing DraftKings and FanDuel from completing their merger as the Federal Trade Commission (FTC) seeks a preliminary injunction.

The proposed merger would keep both websites operational. DraftKings CEO Jason Robbins will be the CEO of the merged company and FanDuel CEO Nigel Eccles will become Chairman of the Board. Even though both companies will still be operating and consumers will have a choice of which to use, the FTC argues the merger will …

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FTC Seeks Injunction on FanDuel and DraftKings Merger

The Federal Trade Commission (FTC) and the attorney generals for California and the District of Columbia will file a complaint to prevent the merger of FanDuel and DraftKings while the FTC is reviewing the merger process. FanDuel and DraftKings make up 95 percent of the daily fantasy sports market. The FTC argues the merger would “deprive customers of the substantial benefits of direct competition.”

The companies announced the merger in November 2016, in large part to cut their legal bills. At the time, the …

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