DraftKings sues to keep going in IL

The DraftKings lawsuit asks the court for an expedited opinion declaring that fantasy games do not constitute gambling by IL law and nullifying Madigan’s Wednesday opinion letter.

Madigan said in her decision 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.

The key here is that DraftKings and FanDuel have always said their offerings are legal because they are games of skill, but in this case, Madigan is saying it doesn’t matter at all.

State Rep. Mike Zalewski, one of the sponsors of the proposed Fantasy Contests Act, said it’s clear from his perspective “that what we’re to do in the Generally Assembly (is) to reconcile our law to make sure that players are protected with strong consumer protections but also allow them to play this popular game in IL”.

Madigan disputes the claim that daily fantasy sports are protected under a 2006 federal law, pointing out that law specifically leaves it up to the states to determine whether the games are, in fact, gambling.

Boies also said the company will work with lawmakers to come up with a resolution to keep the site open, but said in the meantime that it plans to “preserve the status quo”.

Madigan’s surprise ruling, issued late Wednesday afternoon, is the latest legal setback for the previously high-flying fantasy sports sector.

The companies believe they are legal games of skill as opposed to games of chance like traditional gambling. Schneiderman then sought, and won, injunctions against DraftKings and FanDuel from a state trial judge also on Dec 11.

The DraftKings filing estimates IL accounts for about 10 percent of DFS participants.

While players may compete for free, the sites focus more heavily on paid contests that can return cash prizes ranging from a few dollars to more than $1 million. For the most part, states reviewing the legality of daily fantasy sports have avoided addressing the season-long version of fantasy sports.

Riverside Democrat Michael Zalewski says his bill would exempt fantasy sports from the IL ban on illegal gambling.

FanDuel said it was perplexed by the opinion, arguing “Chicago may be the best sports town in the country”. “Hopefully the legislature will give back to the people of IL the games they love”. The Illinois decree followed decisions in NY and Nevada to ban the online sites as illegal gambling. “A sports town like Chicago and a sports loving state like IL deserves nothing less”.