New York Supreme Court Lawsuits for DFS Juggernauts
16 November 2015
Daily fantasy sports hasn't been doing so well over the past couple of months. After a scandal broke loose when a DraftKings employee used insider information to pull about $300,000 in winnings from FanDuel, they have been under fire from virtually every direction. After New York Attorney General Eric Sniederman pressed a cease-and-desist order on them, they have struck back with individual lawsuits in the Supreme Court of the state of New York.
The Legality of Daily Fantasy Sports
In New York, everything about the legality of anything remotely considered gambling comes down to the argument of skill and chance. Games like online poker have had to deal with situations like this before, and while DFS obviously has a similar level of skill as poker does, some people want to just lump it in with traditional forms of gambling like casino table games. This is ridiculous, and that's what this lawsuit is all about.
The lawsuits that have been filed by DraftKings and FanDuel ask the court to build a declaration about whether daily fantasy sports is legal. They have also asked the court to clarify that DFS is a game of skill and not a game of chance. It'll be incredibly interesting to see how this unfolds because this could be the pivotal point for how DFS is handled from here on out in the United States. A favorable ruling in New York would virtually guarantee the upper ground and advantage since it would have been confirmed that the contests are games of skill.
What Happens Next?
For the time being, we're all going to have to just sit and wait. It's too early to tell what the New York State Supreme Court is going to do with these lawsuits. What we do know, however, is that Attorney General Eric Sneiderman is going to do everything he can to combat DFS since it gets his name in the news. Other states are definitely going to sit back and watch the results of this ruling, and that's why it's so important. We're at a critical juncture with daily fantasy sports with these lawsuits, and the two largest companies in the business are leading the charge while hoping for the best.
09 January 2016Daily Fantasy Sports Giants Make Deal With Illinois
Illinois Attorney General Lisa Madigan was asked by the legislature recently what her opinion was on the legality of daily fantasy sports in the state. She said that her opinion was that it was illegal. DraftKings, in turn, made a deal with the state that will allow them to continue to operate there until a hearing in June that will determine the legality of the contests.Read full article
10 December 2015DraftKings Sues Payment Processors for Pulling Service
The drama just doesn't end for the daily fantasy sports industry. DraftKings has launched a lawsuit in Boston against Vantiv and Optimal, two payment processing companies, over a breach of contract issue after they pulled their services. This pull came after the New York Attorney General filed a cease and desist warning, which DraftKings is currently contesting in court. This comes down to the effects of the UIGEA, and that's an extremely complicated topic for daily fantasy sports companies.Read full article
25 November 2015Daily Fantasy Sports Giant FanDuel Forms Board of Advisors
A new advisory board has been created for FanDuel, one of the two largest daily fantasy sports companies in the world. The board's express purpose is to help the company develop policy, but it's not hard to see that they're scrambling at this point to get as much positive publicity as possible after the scandals and other hits that the industry has taken in the past couple of months. Who is on the Board This board consists of a number of big names in sports and politics.Read full article