Third class action filed against daily fantasy sports market leaders
News on 24 Oct 2015
News on 24 Oct 2015
Another class action – the third in as many weeks – has been launched in a federal court by two Ohio residents who claim that daily fantasy sports operators DraftKings and FanDuel illegally offer gambling and should reimburse all deposits.
The lawsuit, which seeks to represent other players in a class action, was filed this week in the US District Court for Cleveland, citing the two DFS market leaders.
Approached for comment by the Associated Press news agency a FanDuel spokesperson said the company does not comment on pending litigation; DraftKings did not respond.
The state Attorney General’s office in Ohio said the state does not have specific daily fantasy sports laws.
In related news, USA Today reports that the National Basketball League position on daily fantasy sports has not changed despite the major furore and legal reviews now swirling around the sector.
The NBA has an equity stake in FanDuel, and NBA teams have marketing relationships with DraftKings .
NBA Commissioner Adam Silver reiterated Friday that DFS sites should operate under a regulatory framework.
“I continue to view it as a positive in that if the alternative is this massive underground, illegal sports betting industry, and to the extent that daily fantasy sports, albeit not viewed as gambling under the law, is a form of entertainment and engagement that fans want to engage in and enjoy,” Silver said.
“It’s something I’ve spent a lot of time studying and trying to understand, looking at how other jurisdictions deal with it as well outside of the United States where our sport is very popular.”
Almost a year ago in a now-famous op-ed column in The New York Times, Silver broke ranks from other US sports leagues by advocating that sports betting beyond the restrictions of the federal Professional and Amateur Sports Protection Act should be allowed across those states that wished to legalise.
