Illinois AG seeks dismissal of daily fantasy sports operator complaints

Illinois state Attorney General Lisa Madigan has filed motions to dismiss lawsuits filed by daily fantasy sports operators DraftKings and FanDuel.

Two days before Christmas, Madigan released her opinion that DFS was illegal gambling under state law and sent notices to both DFS operators saying she expected them to add Illinois to the list of states from which they didn’t accept action.

The sites promptly filed complaints seeking damages for Madigan allegedly harming their reputation and impeding their ability to conduct business, while seeking a ruling that their operations aren’t violating Illinois’ Criminal Code.

Within days, the parties reached a deal “not to pursue any other action” against each other until the matter was resolved. The sites were widely considered to be playing for time while state legislators attempted to pass DFS-friendly consumer protection bills that would exempt DFS from state gambling laws.