DraftKings and FanDuel on Christmas Eve filed lawsuits in Illinois “asking a judge to declare their games to be legal, a day after the state's attorney general outlawed them as gambling,” according to Suzanne Barlyn of REUTERS. This came after last week’s opinion by AG Lisa Madigan “was the latest blow to the two companies.” Both DFS companies said “they would continue to operate in Illinois, despite Madigan's opinion, pending the outcome of their lawsuits, which were filed in Cook County and Sangamon County circuit courts, respectively” (REUTERS, 12/24). Madigan’s opinion said that the argument over whether skill is required in betting on short-term fantasy-team contests "is irrelevant." She pointed out that illegal gambling "occurs when someone 'plays a game of chance or skill for money.'" But Madigan noted that there is "pending legislation before state lawmakers that would exempt such games from Illinois’ gambling law" (CHICAGO SUN-TIMES, 12/24). Madigan in her decision said that while the fantasy league companies "describe clients as 'actual contestants' and the contests may involve some 'degree of skill' in selecting an athlete for a fantasy team, the players do not have any control or influence to determine the outcome of the game" (CHICAGO TRIBUNE, 12/24).
PROBLEMS STACKING UP: USA TODAY's Brent Schrotenboer wrote Madigan's ruling is "another punch to the guts" of FanDuel, DraftKings and other DFS sites. This "once-promising new industry finds itself in another troubling spot -- forced to fight for its life in a big state." Other states "could follow, leading the companies to ramp up lobbying efforts and appeal to their customers for grassroots support in an effort to stay viable." Officials in Texas and California "have been considering this issue, too" (USA TODAY, 12/24).
WHAT’S NEXT? In St. Louis, Kurt Erickson noted Missouri “soon could become the latest battleground” on DFS. Although no formal legislative proposals have been filed,” both DraftKings and FanDuel have hired lobbyists and “could be poised to push forward with business-friendly legislation when the House and Senate return to action Jan. 6” (ST. LOUIS POST-DISPATCH, 12/26). In California, Ryan Kartje looks at pending legislation in California and wrote, “As the largest state yes to address daily fantasy, California could shift the balance of the entire daily fantasy industry” (ORANGE COUNTY REGISTER, 12/26). The BOSTON GLOBE looks at the states were DFS is “facing heat” -- including Pennsylvania, California, San Diego, Texas, Florida and Maryland (BOSTON GLOBE, 12/26).
