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 …
Continue ReadingDraftKings 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 …
Continue ReadingSuit 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 …
Continue ReadingFTC 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 …
Continue ReadingUpdate: 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 …
Continue ReadingFTC 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 …
Continue ReadingDraftKings Sued by Fantasy Sports Cable Network
DraftKings has gotten a lot of negative attention in the past year, and its luck doesn’t seem to be changing. On September 23, 2016, Anthem Sports & Entertainment Corp sued DraftKings in a New York court for failing to pay over $4 million in a television programming deal.
In August 2015, Anthem Sports, as the owner of the fantasy sports cable network Fantasy Sports Network, Inc., claimed it made a television programming deal in which DraftKings agreed to pay Anthem $4.5 million to produce daily …
Continue ReadingFanDuel Argues First Amendment Protects Use of NCAA Players’ Names and Likenesses
On Tuesday, June 26, 2016, FanDuel asked an Indiana federal court to dismiss it from a putative class action accusing daily fantasy sports operators of profiting off the unauthorized use of former NCAA athletes’ names and likenesses. It contended that its use of the names and likenesses was protected by the First Amendment.
FanDuel has had trouble with using the NCAA as a portion of its daily fantasy sports platform before, as back in March it had to reach a deal with the NCAA agreeing …
Continue ReadingDraftKings Automated Text Class Action Continues
DraftKings has been subject to ongoing legal scrutiny and the legality of online fantasy leagues hosted by companies like DraftKings and FanDuel has been debated over the past years. Along with questions surrounding potential anti-gambling law violations, stakeholders are also questioning the truthfulness of the aggressive advertisement tactics employed.
In October 2014, Izsak expressed his displeasure with DraftKings advertising tactics by filing a class action suit in Illinois federal court. He claims that on September 1, 2014, he received an unsolicited text message from DraftKings, …
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