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Should DraftKings and FanDuel Pay Consumers Back For Illegal Gambling?

June 21, 2016
Colson Hicks Eidson

After agreeing to stop operations in New York, daily fantasy sports site FanDuel finds itself preparing to exit another of its big markets, Texas. When the Texas AG Ken Paxton declared daily fantasy sports illegal gambling, his office took steps to protect the citizens of his state. These steps have included lawsuits, demands on the companies, and threats to force DFS companies to pay consumers back, but will these remedies happen?

Should DraftKings And FanDuel Pay Consumers Back

In New York, the attorney general threatened DraftKings and FanDuel with lawsuits and the possibility of having to pay back the losses of around 600,000 New Yorkers. These threats motivated the companies into action, and when DraftKings and FanDuel worked out a deal to cooperate with the New York AG’s office, the threat of repayment faded away, but that threat still looms in other states.

In Oregon, a class action lawsuit—which includes over 100 Oregon players—is asking a judge to force DraftKings and FanDuel to return their losses. The plaintiffs claim that the games on these websites constituted illegal gambling, according to Oregon law, and so they want a refund for being duped into playing.

What About DFS Players In Florida?

It was discovered that DFS sites like FanDuel and DraftKings sometimes use programs and insider trading to increase the odds in certain players’ favor. This combined with the debates going on in the Florida legislature makes the future of DFS uncertain in our state too, which means players might still see their losses returned, but the outcome of the cases is still uncertain.

Do you think DraftKings and FanDuel should refund player’s losses? Do you think DFS constitutes illegal gambling? Let us know on Facebook and Twitter, and keep following our blog for the latest new on the fate of DFS.