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Are DraftKings and FanDuel Racketeering?

February 7, 2016
Colson Hicks Eidson

Daily fantasy sports have taken off in popularity over the past few years. These games allow you to build teams using actual professional players, and depending on the in-game performance of those players, you can actually win money. However, these games are coming under scrutiny as many people are beginning to ask if these games are legal.

Are DraftKings and FanDuel Racketeering?

A lawsuit in Louisiana is claiming that the daily fantasy sports websites DraftKings and FanDuel have been using insider information to rig games and win large sums of cash. These accusations surfaced after a report from the New York Times revealed that some DraftKings employees were using the data they learned from their jobs to create fantasy teams on their competitor’s site, FanDuel.

The plaintiffs are not only asking for full restitution of entry fees, damages, and punitive damages, but they are also accusing the companies of running corrupt enterprises. This means they are seeking to pursue Racketeering Influenced and Corrupt Organizations Act (RICO) charges against these companies, which could triple any damages they won against the fantasy sports websites.

Since media outlets started running this story, DraftKings and FanDuel has forbidden employees from playing daily fantasy sports for money. However, these measures might be too little too late. Class action lawsuits are being filed in New York, Illinois, and Massachusetts—even Colson Hicks Eidson have filed a class action lawsuit for two South Florida men against DraftKings and FanDuel.

To learn more about these developing class action cases, keep following our blog, and tell us what you think about the FanDuel/DraftKings scandal on our Facebook and Twitter pages.

Colson Hicks Eidson—Injury Attorneys