DraftKings and FanDuel Agree to Stop Paid Contests in New York

A major change has been made in the New York world of fantasy sports. New York Attorney General Eric Schneiderman made an agreement with DraftKings and FanDuel in which the companies agree to immediately stop operating paid contests in New York. In November, Schneiderman sent cease and desist letters to the fantasy sports companies alleging the contests are games of chance and constitute illegal gambling under New York law. A preliminary injunction was granted against the companies in December; however, an immediate appeal stayed the
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Will New York Attorney General Eric Schneiderman Tackle Alleged Unfair Ticketing Practices in the NFL?

Joseph Hanna, Chair of Goldberg Segalla’s Sports and Entertainment Law Practice Group, weighed in on New York Attorney General Eric Schneiderman’s recent report over unfair practices in the event ticket industry, including the NFL Ticket Exchange, the league’s official online ticket market. Schneiderman’s report alleges that the way the NFL sells tickets potentially creates price floors, which in turn increases the costs of tickets. Schneiderman has called for corporate and legislative changes in the ticket industry. However, altering the way tickets are sold may…
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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…
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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…
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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
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Attempts to Hurdle the Court: DraftKings and FanDuel Meet With NY Lawmakers

On December 8, 2015, representatives from the daily fantasy sports (DFS) industry met at a joint hearing in Albany with New York lawmakers. The companies argued their positions on DFS before the New York Assembly standing committees on Racing and Wagering and Consumer Affairs and Protection. DraftKings, Inc. and FanDuel, Inc. — DFS industry leaders — are awaiting a New York trial court decision on whether to enjoin the companies’ business operations. In November 2015, N.Y. Attorney General Eric Schneiderman filed a preliminary injunction motion,…
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Schneiderman v. DraftKings, FanDuel: Decision on NY Preliminary Injunction Motions Coming “Very Soon”

A New York trial judge said his decision will come “very soon” in the state court lawsuits between N.Y. Attorney General Eric Scneiderman and daily fantasy sports (DFS) industry leaders DraftKings, Inc. and FanDuel, Inc. On November 10, 2015, Schneiderman sent DraftKings and FanDuel cease and desist letters, ordering the companies to refrain from accepting New Yorkers’ DFS wagers. The AG claims the companies’ DFS operations constitute illegal gambling under New York law. Following the letters, all three parties — DraftKings, FanDuel, and Schneiderman —…
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The DraftKings and FanDuel Litigations: What to Focus On as the Stakes Rise in FL and NY

Since the daily fantasy sports (DFS) insider trading scandal made headlines in late-September 2015, DraftKings, Inc. and FanDuel, Inc., the two DFS industry leaders, have been served with dozens of federal lawsuits. This past week, some noise was made in the federal putative class action known as Gomez v. FanDuel, Inc. et al. Initially, DraftKings and FanDuel were the only defendants in the case, which was filed in the Southern District Court of Florida in October 2015. Yet, on November 21, 2015, the Gomez
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Daily Fantasy Sports in Massachusetts: AG Proposes Regulations Rather Than Prohibition

On Thursday November 19, 2015, Massachusetts Attorney General Maura Healey released proposed regulations for daily fantasy sports (DFS). The proposal follows New York Attorney General Eric Schneiderman’s decision to completely ban the two industry leaders— DraftKings and FanDuel — from accepting wagers from New York residents. Unlike Schneiderman’s decision, which is currently being questioned in New York state courts, Healey proposes increased regulations rather than a complete prohibition. In a statement, Healey argued that the DFS industry “cries out for transparency and robust consumer protection.”…
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FanDuel to Cease Operations in New York Until Hearing on Nov. 25

The pace of the game is moving quickly in the dispute between New York Attorney General Eric Schneiderman and daily fantasy sports (“DFS”) industry leaders DraftKings, Inc. and FanDuel, Inc. As for the latest news, FanDuel has elected to suspend its New York operations until the November 25th emergency hearing. Following a month-long investigation, Schneiderman notified DraftKings and FanDuel on November 10, 2015 of his decision to prohibit the companies from accepting New Yorkers’ DFS wagers. Both companies decided to challenge Schneiderman’s decision by…
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