Recently, a New York State Judge ordered all online fantasy sports sites to stop taking “entry fees” from New York state consumers. This was widely observed as a big hit for the industry, while New York is not the first state to make this move, it is by far the largest and most impactful. Draftkings and Fanduel, the country’s two largest fantasy sports sites, appealed the decision and an emergency stay was granted. This means that the sites can continue operating in New York for the time being. The legal battle is just beginning and many different legislators around the country are attempting to craft new regulations. Online fantasy sports has become very big business and ultimately the most important thing is the protection of consumers. If you have any questions about online fantasy sports and consumer protection, do not hesitate to contact an experienced consumer protection attorney.
New York Argues that Fantasy Sports are Currently Illegal
In November, New York Attorney General Eric Schneiderman sent paid online fantasy sports sites a cease and desist letter. Schneiderman claimed that companies running for money fantasy sports games were actually running illegal gambling operations. New York argues that, in the interest of consumer protection, the sites operation can not be allowed to continue without new legislation in the state.
Illinois Proposes Regulation
As a contrast to New York, Illinois is currently considering legislation to regulate, but not ban, the online fantasy sports industry. The legislation was introduced earlier this fall. Following the much harsher actions from New York and other states, representatives of the daily fantasy sports industry have now praised the proposed Illinois legislation as a more acceptable path forward. The goal of the Illinois bill is to make sure that consumers are protected, but at the same time, still allow consumers access to online fantasy sports. One stipulation in the bill would require that fantasy sports websites check into a player’s background before accepting entries fees to make sure that the player is in an appropriate financial position to wager money on fantasy sports. For example, the bill would require that sites check to see if players have outstanding child support obligations. If they do, the sites would be legally required to block those players from wagering on fantasy sports.
Contact An Experienced Consumer Protection Attorney | Keogh Law
Online fantasy sports is now a multibillion dollar industry. But it is an industry that is in serious regulatory peril around the country. Whatever the path forward, consumers must be protected. If you have wagered on online fantasy sports and you feel that your consumers rights have been violated through fraud, deception or for any other reason, you should contact an experienced consumer protection attorney immediately. Call the offices of Keogh Law, LTD today at 866-725-1092.