Category Archives: Fantasy Sports

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Fantasy Stock Picking Contest Deemed by SEC to be Illegal Security-based Swaps

The SEC shut down a “fantasy” stock picking game for allegedly violating securities laws. Forcerank LLC ran contests via mobile phone games where players paid a fee and predicted the order in which 10 securities would perform relative to each other. In each week-long game, players won points based on the accuracy of their prediction, … Continue Reading

Massachusetts Becomes Ninth State to Legalize Daily Fantasy Sports

Massachusetts Governor Charlie Baker has signed into law a bill to legalize daily fantasy sports in the Commonwealth.  Massachusetts is the ninth state to legalize daily fantasy sports, and the eighth to do so this year.  The legalization of daily fantasy sports, or “fantasy contests,” was included in a larger bill—H. 4569—related generally to job … Continue Reading

New York Daily Fantasy Law Passed – But Will it Stick?

As previously reported on our blog, New York enacted a law legalizing fantasy sports (subject to certain conditions and licensing). This undoubtedly makes DFS operators and players happy. But consistent with the notion that you cannot please everyone, some anti-gambling groups are not  happy. It has been reported that some are considering litigation to block … Continue Reading

DraftKings and FanDuel to Suspend Activity in New York, Effective Immediately

There has been a new development in the ongoing legal battle between New York Attorney General Eric Schneiderman and daily fantasy sports (DFS) operators DraftKings and FanDuel, as the two largest DFS operators agreed earlier this week to stop taking bets in the state of New York. In exchange, the state’s attorney general’s office agreed … Continue Reading

Daily Fantasy Sports Update – DraftKings Sues Texas AG; Activity in GA and IN

In January, Texas Attorney General Ken Paxton issued an opinion that daily fantasy sports (DFS) is likely illegal gambling under Texas state law “[b]ecause the outcome of games in daily fantasy sports leagues depends partially on chance.” On Friday, popular DFS operator DraftKings sued the Texas Attorney General seeking a declaratory judgment that DFS contests … Continue Reading

Virginia Passage of Fantasy Sports Law Appears Imminent; PA, NY and MD Bills in the Works

Virginia’s House and Senate have both passed a bill (SB 646) that would legalize, but regulate, fantasy sports in Virginia. All that is needed is for Governor McAuliffe to sign it into law.  If passed, the law would create the Fantasy Contests Act, which applies to fantasy contests with an entry fee offered in Virginia.… Continue Reading

Sweet Home Alabama for Daily Fantasy?

Alabama Senator Sanford introduced a bill February 2 that would exempt fantasy from Alabama’s gambling law. The bill also would establish the Fantasy Contests Act to regulate the operation of fantasy or simulated contests in this state. This bill would require fantasy contest operators to implement procedures for consumer protection of fantasy contest players, would  require … Continue Reading

Hawaii is No Paradise for Daily Fantasy Sports – Skill Measured by Average Players, not Experts

Hawaii AG Doug Chin is one of the latest to opine that daily fantasy sports are illegal under that state’s law. According to a press release accompanying the opinion, “Gambling generally occurs under Hawaii law when a person stakes or risks something of value upon a game of chance or upon any future contingent event not … Continue Reading

Texas AG Hits Deep in the Heart of DFS

Today,  the Texas AG issued an opinion that paid Daily Fantasy Sports (DFS) are illegal under Texas law, but noted that “traditional” fantasy sports leagues are, as a general rule, legal under Texas law. In so opining, the AG referenced Texas gambling laws (chapter 47) which state, in part: In Texas, a person commits a … Continue Reading

New York Court Sacks Daily Fantasy Sports

This morning, a New York State court ordered a shut down of the leading daily fantasy sports sites in New York, at least for now. The Court found the NYAG has a likelihood of success in showing that the activities are illegal gambling. The Court distinguished daily fantasy from season long fantasy sports and refused … Continue Reading

New Fantasy Lawsuit – A Horse of Another Color?

While all eyes remain focused on the impending preliminary injunction ruling in the New York state daily fantasy sports suit, a new fantasy sports suit has been filed in California. The California suit targets DerbyWars, a fantasy site based on horseracing, for allegedly accepting wagers in violation of the Interstate Horseracing Act (“IHA”). DerbyWars awards … Continue Reading

NY Daily Fantasy Sports Case May Not Be Decided Solely on Whether DFS is Skill or Chance

Due to the specifics of New York state law, the outcome of the closely-watched New York state case against daily fantasy sports operators may not come down solely to a question of whether DFS is skill. New York has a two-part test. One part of the test focuses on whether the relevant activity involves skill on the part of the participant. … Continue Reading

New York Sacks Daily Fantasy Sports; Gives Pass to Traditional Fantasy Sports

The New York attorney general issued a cease and desist order to a number of daily fantasy sports (DFS) operators alleging that DFS constitutes illegal gambling under NY state law. According to the AG’s interpretation, DFS operations constitute illegal gambling under New York law, according to which, “a person engages in gambling when he stakes or … Continue Reading

Illinois Takes Consumer-Friendly Approach to Daily Fantasy Sports Regulation

Illinois is one of the latest states to initiate potential legislation involving daily fantasy sports (DFS).  Like a number of other states, it is not declaring DFS illegal. Rather, it is taking a very consumer protection focused approach. According to Rep.  Mike Zalewski (D, Ill.), the forthcoming legislation would create standards for auditing daily fantasy … Continue Reading
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