FanDuel must refund money lost by players: Lawsuit

NEW YORK - Oct. 15, 2015 - PRLog -- A New York resident filed a proposed class action complaint against FanDuel, Inc. (“FanDuel”) alleging that the company is operating an illegal online sports bookmaking operation.  The lawsuit alleges that FanDuel’s daily gambling contests violate New York’s criminal law which prohibits accepting wagers in the capacity of a bookmaker.

Contest of Chance

The complaint alleges that FanDuel defines its sports betting scheme as Daily Fantasy Sports (“DFS”) in a feeble attempt to circumvent New York Penal Law (“NYPL”) which expressly prohibits profiting from “any contest, game [or] gaming scheme…in which the outcome depends in a material degree upon an element of chance, notwithstanding that skill of the contestants may also be a factor therein.”

According to the complaint, FanDuel’s gambling scheme is a game of chance because an individual athlete’s performance will always be affected by material elements of chance that affect scoring and winning outcomes including variables such as player injury, fumbles, weather conditions, controversial officiating, suspension, or other off field circumstances.

Bettors have no control over all of the variables that affect the performance of the college and professional athletes, rending the FanDuel scheme a game of chance.

Unlike traditional fantasy sports, for each college and professional game, FanDuel establishes a handicap, similar to a point spread, for a limited group of players and teams (for example, a football team’s entire defense can be selected).  Bettors select the individuals and teams based upon the spread, eliminating almost all element of skill, the complaint alleges.

Unlawful Internet Gambling Enforcement Act of 2006

FanDuel claims on its website that the Unlawful Internet Gambling Enforcement Act of 2006 (“UIGEA”) legalized fantasy sports, making its sports betting scheme legal.  The complaint contradicts FanDuel’s legality claim by citing the differences between traditional fantasy sports and FanDuel’s gambling scheme.

The complaint also quotes former U.S. congressman Jim Leach, who was one of the drafters of UIGEA.  Former Congressman Leach said is “sheer chutzpah” for the daily fantasy sites to pretend the [UIGEA] makes them legal.

BETTING ON COLLEGE ATHLETES

The complaint cites several examples of FanDuel’s use of college athletes in its gambling contests, including the names and corresponding handicaps of hundreds of college students. FanDuel offers wagering on numerous college football and basketball games and even uses pictures of college athletes on its website, the complaint alleges.

REFUND LOSING WAGERS

The complaint cites a New York law that allows individuals to recover gambling losses from illegal gambling.  The law was enacted to discourage individuals from engaging in illegal gambling in the State of New York.

The law firms that filed the proposed class action complaint established www.fandueldispute.com to provide FanDuel customers with additional information.

Media requests about the FanDuel lawsuit should be made to attorney Hunter Shkolnik of Napoli Law PLLC.

Napoli Law PLLC
hunter@napolilaw.com
212-397-1000

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