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 …

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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 …

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Complaint Amended in Florida Federal Class Action v. DraftKings, FanDuel

A Florida federal class action has been the most recent lawsuit to join the blitz against daily fantasy sports (DFS) websites, FanDuel and DraftKings. Specifically, the Florida case, originally filed on October 15, 2015, alleged that the DFS sites permitted certain users, known as “shark bettors,” to unfairly run complex computer programs and algorithms, which utilize “elaborate statistical modeling and automated tools that can manage hundreds of entries at once and identify the weakest opponents.”

On October 16, 2015, the plaintiffs amended the original complaint

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“Apex Predators” and “Shark Bettors,” Oh My! Florida Federal Class Action v. DraftKings, FanDuel Adds a Twist

As it now stands, DraftKings and FanDuel — daily fantasy sports gambling websites (DFS)— face over a half-dozen civil lawsuits in federal district courts since the insider trading scandal emerged in late September 2015.  The most recent action was filed in a Florida federal court on October 15, 2015.

Like the lawsuits filed against DraftKings and FanDuel in states such as New York and Louisiana, the Florida lawsuit seeks certification for a class action. Under the complaint, the proposed plaintiff classes are “all individuals …

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Class Action Filed Against DraftKings, Fan Duel

On Thursday, October 8, 2015, Fantasy Sports giants DraftKings and FandDuel were hit with a class action lawsuit on the heels of a data leak scandal.

The lawsuit — Johnson v. Fanduel, Inc. et al — was filed by Adam Johnson, a Kentucky resident, in the United States District Court for the Southern District of New York. The complaint makes seven different claims against DraftKings and FanDuel, including fraud and misrepresentation, violation of the New York False Advertising Act, and civil conspiracy, among others.…

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DraftKings and FanDuel Look to Change Internal Regulations Following Scandal

This past week, reports surfaced that an employee of DraftKings, a fantasy sports betting company, used internal information to win $350,000 on the competitor website, FanDuel.  According to statements made by both companies on Wednesday October 5, 2015, the billion-dollar startups will now aim to better their internal regulations.

The fantasy sports betting industry has surged over the last year, with DraftKings and FanDuel leading the way.  Industry consultant Eilers Research projected that such companies will generate around $3.72 billion in entry fees and $370 …

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NY Attorney General To Investigate Fantasy Websites

On Tuesday, October 6, 2015, New York Attorney General Eric Schneiderman began an investigation into DraftKings and FanDuel, the two largest daily fantasy sports websites. The investigation comes as a result of news that the two companies allow their employees, many of which have information not available to the public, to play each other and win large payouts.

Schneiderman sent letters to the CEOs of both companies requesting the employee names and job titles, as well as other information, such as pricing algorithms. The letters …

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Massachusetts Attorney General To Review Legality of Fantasy Giant DraftKings

The legality of DraftKings Inc., a Boston-based fantasy sports website, will be reviewed by the attorney general of its home state. Massachusetts Attorney General Maura Healey, a well-known supporter of strict casino regulations, was asked about the legality of DraftKings during an interview with State House News Service. Healey told the News Service, “The point is this: This is a new industry. It’s something that we’re reviewing, and we’ll learn more about it.”

While fantasy sports have been around for decades, daily fantasy websites, …

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Bittersweet Victory: DraftKings Reaches Deal With ESPN Without Any Equity Investment

On Wednesday, June 24, fantasy sports company DraftKings Inc. reached a promotional partnership with ESPN.  DraftKings had reportedly been in talks with Walt Disney Co., ESPN’s parent company, for an equity investment earlier this year.  According to the reports from April, Disney was close to investing $250 million into DraftKings, an amount that would value the company at roughly $900 million.

Although neither company would discuss how much the ESPN marketing deal was actually worth, the agreement makes DraftKings the “official fantasy sports offering” on …

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