Illinois Fantasy Sports Update: Expedited Lawsuits Due in Court This Summer

 Posted on March 17,2016 in Criminal Law

A few weeks ago, we talked about an announcement by Illinois Attorney General Lisa Madigan regarding the legality of online fantasy sports in the state. As sports fans who are proud to call Illinois home, the Attorney General’s determination that Illinois residents cannot participate in pay-to-play fantasy sports without breaking the law has directly impacted many of us at OVC, INC., along with millions of others around the state. Our first post on the subject mentioned that two major players in the online fantasy sports industry had filed suit against the Attorney General, claiming that her interpretation of the state’s gambling laws is incorrect and that the games should be officially declared legal. While similar battles are underway in other states, including New York and, most recently, Texas, the cases in Illinois are on the fast track to the courtroom, which at least one trial expected to begin in Cook County by mid-summer.

Quick Recap

Just before Christmas, Ms. Madigan issued an advisory opinion that daily fantasy sports games violate the state’s statutes regarding gambling. As pay-to-play games for cash prizes, her letter indicated, fantasy sports games rely primarily on luck and performance of professional athletes well beyond the fantasy participants control. Therefore, she sees the games as illegal under current Illinois law, and asked host sites to warn Illinois residents of the illegality.

Within days, DraftKings and FanDuel, the two largest online daily fantasy sports centers, filed similar lawsuits against the Attorney General, claiming that the law permits games that reward a participant for skill and performance. Both companies maintain that, while the games use on-the-field statistics, the real measure of a participant’s success is how well he or she can select a team, using analytical skills and knowledge of the sport. Neither company has stopped offering their games in Illinois as the battle continues.

What Is Next?

The Attorney General’s office, as might be expected, filed similar motions in January to dismiss each of the lawsuits on several grounds. First, the issuance of the Attorney General’s opinion did not constitute a legal threat or require specific action by the host sites under penalty of law. Therefore, the motion alleges, there is nothing to be overturned or prevented by a court of law. The motion also claims that the Attorney General was acting in accordance with her assigned governmental duties and is protected by sovereign immunity.

There has not been a ruling on the motion in either case, but each has been placed on a fast-track toward a trial. The Attorney General’s office has agreed to an expedited court schedule, a decision with which both DraftKings and FanDuel are on board. Barring a dismissal in the meantime, both cases could see bench trials getting underway as early as June in two separate parts of the state. DraftKings filed its lawsuit in Cook County Circuit Court while FanDuel chose Sangamon County, which means Chicago and Springfield, respectively, will be focal points regarding the issue in just a few months.

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Sources:

http://www.legalsportsreport.com/7106/illinois-dfs-primer/

http://www.usatoday.com/story/sports/2016/01/22/draft-kings-fanduel-illinois-attorney-general-lisa-madigan/79199408/

http://www.chicagotribune.com/sports/breaking/ct-draftkings-lisa-madigan-20151229-story.html