Daily Fantasy Sports Operators Going to Court

Published Tuesday, October 13, 2015 - Online-Casinos.com
Daily Fantasy Sports Operators Going to Court

In the USA the recent problem with the integrity of the daily fantasy sport industry has been playing out with allegations and excuses coming from both sides. It is not unusual for an individual or a group to file legal action against a party they feel has wronged them. Litigation is the foundation of settling disputes that involve money, property , or wrong actions.

Daily fantasy sports has now become an issue for the courts as is witnessed by the recent announcement there will be a class action suit launched against the operators of DraftKings and FanDuel the leading suppliers of daily fantasy sports in America. The action brought about by an individual from the state of Kentucky who is alleging that the companies being negligent, made fraudulent claims and displayed false advertising. The integrity and information related repercussions of the so called mistake by the DraftKings staff member who apparently capitalized on inside knowledge has brought about serious discussion in legislative circles. Eric Schneiderman the New York Attorney General has launched an inquiry into both operators to establish the advantages company staff may have gained using data to win prizes at other daily fantasy sports service providers.

DraftKings and FanDuel will now have to deal with a class action lawsuit, which focuses on the fact that both operators allowed staff to take part in competitions on websites other than their own.

“DraftKings performs analytics to determine winning strategies, return on investment of certain strategies and even how lineups on FanDuel would do if they were entered into DraftKings contests,” the suit said.

In response the DraftKings chief executive officer Jason Robins said to Fortune, “While we acknowledge the problem of someone seeing the data, and certainly seeing that data would be helpful, it’s not insider trading because it’s not like he had a specific data point that guaranteed he would win.”

 

Related news

Return to Latest News