People Asked and the Texas AG Answered: Advisory Opinion Concludes Daily Fantasy Sports Illegal in Texas

On Tuesday January 19, 2016, Texas Attorney General Ken Paxton issued his advisory opinion on the legality of daily fantasy sports (DFS) under Texas law. In short, he did not apply the law to the DFS industry favorably.

Since October 2015, daily fantasy sports — namely, industry leaders DraftKings, Inc. and FanDuel, Inc. — have been threatened nationally under federal statutes, individual state laws, and consumer lawsuits. The firestorm was sparked by news of scandal. On September 27, 2015, a DraftKings employee inadvertently released company …

January 15, 2016 Fantasy Sports

Daily Fantasy Sports Industry Voices Concerns Over Mass. AG’s Regulations Proposal

On January 12, 2016, the State of Massachusetts held a public hearing on proposed regulations for daily fantasy sports gambling (DFS). The DFS industry voiced many concerns.

In November 2015, Mass. Attorney General Maura Healey proposed consumer protection regulations. Rather than banning DFS altogether, the proposed regulations would seek to ensure transparency, truthful advertising, and the protection of the young. Such regulations would prohibit Massachusetts DFS players less than 21 years of age. The proposal also seeks to place a $1,000 monthly deposit limit …

January 13, 2016 Fantasy Sports

Mass. Gaming Commission: Daily Fantasy Sports May Still be Illegal Despite Regulation Proposal

On January 11, 2016, the Massachusetts Gaming Commission released a report questioning the legality of daily fantasy sports (DFS) under state laws. The report, called the “White Paper on Daily Fantasy Sports,” was issued the day before the public hearing on Mass. Attorney General Maura Healey’s proposed regulations. In November 2015, Healey proposed consumer protection regulations for DFS rather than banning companies’ operations altogether.

In sum, the Commission argued that while regulations may protect consumers, they do not change the fact that DFS …

January 11, 2016 Fantasy Sports

DraftKings, FanDuel Granted Stay of Preliminary Injunction in New York

News first broke from ESPN’s Darren Rovell that the New York Appellate Court decided to grant DraftKings and FanDuel their motions to stay preliminary injunction pending appeal. The decision was issued Monday January 11, 2016.

DraftKings and FanDuel—industry leaders in daily fantasy sports (DFS) — have been involved in litigation with New York Attorney General Eric Scneiderman since November 2015. In October 2015, Schneiderman sent the companies cease and desist letters, claiming that the companies must terminate business operations in New York because DFS …

January 7, 2016 Fantasy Sports

Not So Fast! FanDuel Argues Plaintiffs in California Lawsuit Agreed to Arbitrate Disputes

In Delgado v. Fanduel, Inc., FanDuel argued in motion papers on Monday that the plaintiffs cannot escape the arbitration clause in the company’s user agreement. The case is a proposed false advertising class action filed in the U.S. District Court for the Central District of California in December 2015.

FanDuel, alongside its rival, DraftKings, Inc., is a leader in the booming daily fantasy sports (DFS) industry. Following an alleged insider trading scandal in late-September 2015, FanDuel and DraftKings were forced to face dozens of …

January 5, 2016 Fantasy Sports

NY Attn. Gen. Schneiderman Amends Complaints v. DraftKings, FanDuel on Eve of Appellate Hearing

Following the New York trial court’s ruling to grant NY Attorney General Eric Schneiderman’s preliminary injunction motion, DraftKings and FanDuel — the industry leaders in daily fantasy sports (DFS) — immediately appealed. The appellate division granted the companies an interim stay of the preliminary injunction, as well as an expedited hearing date for the appeal, which was scheduled for January 4, 2016.

At issue in New York is whether DFS constitutes unlawful gambling under current state laws. AG Schneiderman believes it does. The …

January 5, 2016 Fantasy Sports / Litigation / TV

Sports Legislation and Regulation in 2016: The Hot Topics (Part I)

In the realm of sports law, 2016 will provide some interesting developments as to legislation and regulation. First, many states are likely to take a stance on daily fantasy sports in 2016 — both in the courts and via state legislation. Second, the FCC will rule on “linear” online video platforms that offer sports streaming. Third, the Washington Redskins’ challenge to the cancellation of its trademark registration will face a federal bill proposing to force a name change. And finally, the bill proposal seeking to …

December 28, 2015 Fantasy Sports

Illinois and Texas: The Latest in the Daily Fantasy Sports Legality Issue

As daily fantasy sports (DFS) litigation is on standby in New York (pending is the expedited appellate hearing scheduled for January 4, 2016), the situation is heating up in Illinois and Texas.

Sparked by an alleged September 2015 insider trading scandal between DFS industry leaders DraftKings, Inc. and FanDuel, Inc., the legality of DFS has become a national issue among the country’s individual states. Under the Unlawful Internet Gambling Enforcement Act (2006), states have the individual and independent right to determine whether a subject activity …

December 15, 2015 Fantasy Sports

Anyone Want to Bet How New York Courts Will Rule on Daily Fantasy Sports? The Volley in State Court Continues

The issue whether daily fantasy sports (DFS) is illegal in New York State will continue its back-and-forth volley following an exciting day in state court on Friday, December 11, 2015. The actions filed in New York are related to the national debate on the legality of DFS — opponents in many states argue that DFS constitutes illegal gambling.

On November 10, 2015, New York Attorney General Eric Schneiderman sent DraftKings, Inc. and FanDuel, Inc. — the two industry leaders of DFS — cease and desist …

December 11, 2015 Fantasy Sports

Fantasy Sports Are Gambling? NY Judge Says Yes, Orders DFS Sites to Stop Operating in the Empire State

New York Judge Manuel J. Mandez granted preliminary injunctions against Daily Fantasy Sports sites DraftKings and FanDuel on Friday December 11, 2015. The injunctions were sought by New York Attorney General Eric Schneiderman, and the court order will temporarily shut down the DFS sites throughout the site, at least until the conclusion of litigation on the matter is over. In essence, Judge Mandez has declared that the DFS sites are forms of illegal gambling under New York law.

According to the order, DraftKings and FanDuel …