DFS Legal Troubles in Nevada and Maryland


Posted: April 13, 2016

Updated: April 13, 2016

DFS legal troubles ahead for operators DraftKings and FanDuel: tech companies in Nevada sued them for violating gambling laws, while Maryland Attorney General might take the matter to court.

Tech companies CG Technology and Interactive Games sued daily fantasy operators FanDuel and DraftKings in Nevada for violating US gambling laws. CG Technology (Cantor Gaming in the past) is the operator of a number of Nevada racebooks and sportsbooks. They also have mobile and online gambling applications in Nevada to bet while on the go, as long as you stay within state borders.

CG Technology argues that with DraftKings and FanDuel operating and advertising in Nevada, they violate state gambling laws, at least seven patterns actually. The tech firms also mentioned that the DFS operators continue to ignore cease and desist letters and any attempts to negotiate a settlement.

Maryland DFS legal troubles might continue in court

DFS legal troubles are being made worse by Maryland Senate President Thomas V. Mike Miller Jr., who urged Attorney General Brian E. Frosh to file a lawsuit against daily fantasy operators. Miller said, “The attorney general’s going to have to file suit and take it to court.”

Earlier this year, Frosh asked state lawmakers to rewrite the laws regulating fantasy sports, since the market and the games changed a lot since the 2012 state statute was passed. He said that DFS contests might be illegal under the current legislation, US gambling news reported then. It is unclear yet if the Attorney General would indeed file a lawsuit against DFS operators DraftKings and FanDuel.

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