DraftKings, FanDuel sued by sore losers

Just because someone can do something doesn’t mean they should do it, especially if they’re not proficient at it. A group of individuals is going after DraftKings and FanDuel in court for their daily fantasy sports (DFS) contests, arguing that customers who lost money participating in the competitions should be reimbursed. They assert that the two sports gambling companies were setting them up to lose, knowing that the less proficient players would never be able to compete with the professionals. That’s something most people would consider common sense.

The complaining began in 2016, as told by Casino.org, after a number of players launched claims against the two companies, resulting in the creation of a federal class-action lawsuit that was heard in the US District Court of Massachusetts. That same year, DraftKings and FanDuel were rebuked in New York by then-Attorney General (AG) Eric Schneiderman, who accused them of offering illegal gambling and fraudulent marketing. His attacks, which included threats of multibillion-dollar fines, led to both companies taking a break in the state. The two resumed operations in New York that same year, but also paid a combined $12 million in fines to make the AG happy.

That Massachusetts case was based on the defense that the two operators had “knowingly misled millions of people” by marketing DFS as a contest anyone could win. However, as the plaintiffs could never become millionaires off the activity, either because they didn’t have the experience or the analytical capabilities to make the best choices, they decided that DraftKings and FanDuel must have been lying.

The lawsuit, which brings together individuals from states such as Georgia, Kentucky, New Mexico, South Carolina and Tennessee, asserts, “Defendants thus attracted innocent consumers by knowingly making these false promises and spent hundreds of millions of dollars to ensure it would reach as many consumers as possible.” That essentially sounds like any marketing campaign ever created by any company.