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Daily fantasy sports sites file lawsuits against IL attorney general
“To be clear, this is about Illinois, but it is not just about Illinois”, DraftKings wrote in its 31-page suit asking a court to declare daily fantasy sports legal under Illinois law.
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Attorney General Lisa Madigan issued her legal opinion Wednesday night.
(2) Offers of prizes, award or compensation to the actual contestants in any bona fide contest for the determination of skill, speed, strength or endurance or to the owners of animals or vehicles entered in such contest.
“Unlike traditional fantasy sports contests, which operate on a season-long timetable, daily fantasy sports contests are conducted over short-term periods, such as a week or a single day of competition”, she added.
Madigan’s decision notes there is legislation pending in the state legislature which proposes, in part, to exempt fantasy contests from the general prohibition against gambling.
Zalewski on Wednesday said Madigan’s opinion provides resolution to a lack of clarity that he and other legislators have recognized.
“Chicago may be the best sports town in the country”, FanDuel said in its own statement.
Before the proliferation of DraftKings and FanDuel, the companies identified a small handful of states in which daily fantasy for money clearly violates the law. The following month, New York Attorney General Eric Schneiderman obtained a court order prohibiting New Yorkers from playing the games, though FanDuel successfully argued for a stay, pending an appeal. At least four lawsuits against daily fantasy sports websites are pending in the state.
Shortly after announcing the decision, the Illinois Attorney General’s Office issued letters to the two biggest players in the industry – FanDuel and DraftKings – warning that state residents “are not eligible to participate in contests”.
The Illinois opinion comes amid nationwide scrutiny at the state and federal level as to whether daily fantasy sports games, which have surged in popularity in recent years, amount to gambling.
In fantasy sports, players wager money by picking virtual teams of professional athletes.
“To me, it didn’t make sense to consider legislation when we didn’t know what the current status of daily fantasy sports is in Illinois”, Drury said.
DraftKings and FanDuel have combined to raise almost $1 billion from private investors, including the NBA, Major League Baseball, Fox Sports, NBC, and Google Ventures.
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Fantasy sports started in 1980 and surged in popularity online.