The daily fantasy sites Fanduel and DraftKings have been the subject of various lawsuits throughout the country since a DraftKings employee posts a winning lineup he made on Fanduel last month and they have continued in the wake of being ruled illegal gambling by the state of New York. This week, lawsuits in Brooklyn and Florida not only named the two most well-known daily fantasy companies, but the credit card companies and banks that provided loans and facilitated wagers, and the actual sports entities that have equity in the sites and helped with the massive advertising claims that engulfed television and radio over the past year.

In Brooklyn, Yehuda Guttman filed a suit that purely goes after the banks that he says loaned money or credit used to place bets on the fantasy sites. Guttman’s attorney, Hunter Shkolnik, said there was nothing fictional about the amounts of money his client lost — between $5,000 and $10,000 playing games over the past six years. “My client was like many other people who sign onto DraftKings and FanDuel. They think they’re just playing sports games, but it turns out to be a gambling situation and they lose a lot of money,” Shkolnik said. The suit seeks class-action status and damages to be determined at trial. The suit filed in Manhattan Federal Court names the sites and assorted credit card companies and banks that provide loans, facilitate wagers and collect “unlawful debts” as defendants. Visa, MasterCard and American Express were among those listed in the suit.

Guttman claims he relied on credit cards to set up and manage his FanDuel and DraftKings accounts. And when he built up a balance on the fantasy sites, DraftKings and FanDuel tried to collect through his credit cards, his lawsuit said. “The banks are the facilitators,” Shkolnik said, adding that without their help FanDuel and DraftKings would just be “an idea to scam people.”

In Florida, plaintiffs Antonio Gomez and John Gerecs, represented by prominent lawyer Ervin Gonzalez filed a class action suit in South Florida’s US District Court against the two fantasy companies, the NBA, MLB, NHL, MLS, New England Patriot’s owner Robert Kraft’s Kraft Group, Dallas Cowboys owner Jerry Jones’ Legends Hospitality, New York Knicks and Rangers owner James Dolan’s MSG Sports and Entertainment, Turner Sports, Time Warner, NBC Sports, 21st Century Fox, Fox Sports Media, Visa, Mastercard, American Express, JP Morgan, Capital One, Google, Piton Capital and Scottish Investment Bank, and Paypal, all on the premise that DraftKings and Fanduel “have engaged in illegal gambling and deceptive practices under Florida and federal laws and that the banks, leagues and other companies negligently failed to realize that they were investing and partnering with illegal gambling operations.” The claims included negligence, breach of contract and even racketeering, accusing the sites of being the ringleaders for a mafia style operation where investors provided legitimacy to the illegal gambling that was occurring and allowed the sites to conduct unprecedented advertising to attract more bettors.

Next week, DraftKings and FanDuel appear in New York state court in an effort to fend off an injunction that would prohibit them from operating in the big state. Among the tidbits of information that NY attorney general Eric Schneiderman has revealed as part of his case is exactly how much money these two sites have been pouring into advertising these past few months. For example, FanDuel spent $47 million just in the month of September for nearly 10,000 commercials.

Related Posts:

 
 

0 Comments

You can be the first one to leave a comment.

Leave a Comment