In what is potentially a major setback for the industry, a New York State appellate court recently ruled that the State’s 2016 fantasy sports law violates the State’s constitutional ban on gambling. Along with striking the portion of the law that legalized and regulated the industry, the court also invalidated the portion of the law that excluded fantasy sports from the State Penal Law’s prohibition against gambling.
Why was the fantasy sports law found unconstitutional?
Reality television recently helped turn the public’s attention to the world of fantasy sports law. Following significant backlash concerning the circumstances of her first-place finish in the Millionaire Maker contest, former Bachelor contestant Jade Roper Tolbert was stripped of a $1 million prize awarded to her by fantasy sports operator DraftKings. DraftKings released a statement via Twitter that after an internal investigation, it had decided to update the standings for the contest and declared a new winner.
Why did DraftKings change the standings of its fantasy sports contest?
[Read More]January 30th, 2020
This month, the Washington State Senate and House of Representatives each released separate proposed bills – House Bill 2720 and Senate Bill 6568 – aimed at changing Washington’s gambling law. In response to the Ninth Circuit’s 2018 decision in Kater v. Churchill Downs Inc., Washington State’s legislature is attempting to redefine what constitutes “illegal gambling games” within the meaning of the State’s Recovery of Money Lost at Gambling Act (“RMGLA”). Through this proposed measure, the Legislature hopes to prevent Washington’s booming gaming industry from leaving the State.
How would this gambling law change protect Washington State’s burgeoning gaming industry?
[Read More]November 1, 2019
In an effort several years in the making, Iowa recently issued the State’s first fantasy sports license to DraftKings, Inc. (“DraftKings”). DraftKings wasted no time in getting its operations up and running, having launched its Internet-based Iowa fantasy sports service to the public in recent weeks.
What are some notable provisions of Iowa’s fantasy sports law?
October 10, 2019
The world’s population is increasingly reliant on smart phones and other similar mobile devices. Businesses have been adjusting to this new reality by pursuing consumer outreach through mobile applications (or “apps”) that can be downloaded and accessed via smart phones. Regardless of the medium or technology involved, one particularly potent means of attracting and interacting with consumers involves the use of sweepstakes and other promotional contests. Unsurprisingly, given the emerging trends in smart phone usage and the concurrent proliferation of mobile apps, there has been a wave of mobile apps designed to provide business owners with a platform to host their mobile app sweepstakes.
While mobile app promotions may provide business owners with an ideal combination of technology and marketing reach, there is a complex system of laws, rules and regulations that apply to each separately, as well as unique legal issues that arise when they are used together. One such issue centers around whether sweepstakes sponsors need to offer consumers a free, alternative means of entry (often referred to as an “AMOE”) in addition to the entry process made available via the mobile app itself.
Do You Need to Offer Consumers an AMOE with Your Mobile App Sweepstakes?
October 4, 2019
On October 1, 2019, the Court of Justice for the European Union (“CJEU”) issued an important opinion regarding the scope of consent in the context of the General Data Protection Regulation (“GDPR”). Specifically, the Court determined that a company cannot validly obtain a user’s consent to install cookies on his/her computer device through means of pre-checked boxes. Instead, the Court ruled that for a user’s consent to be valid under the GDPR, consent must be both active and unambiguous.
Why don’t pre-checked boxes constitute valid GDPR consent? [Read More]
October 2, 2019
For as long as the National Collegiate Athletic Association (“NCAA”) and universities have made money on college sports, people have debated whether college athletes should be compensated for their contributions to this lucrative revenue source. On September 30, 2019, the State of California made its position clear on the issue when Governor Gavin Newsom signed into law Senate Bill 206, the Fair Pay to Play Act (the “Law”). The Law opens up many college athlete marketing revenue streams and sets the stage for a possible showdown with the NCAA over the constitutionality of the Law.
How does the Law make way for college athlete marketing?
July 10, 2019
At the end of June, Illinois Governor J.B. Pritzker signed into law a massive gaming initiative, which includes legalized sports gambling. While the sports gambling law’s passage does not mean that wagers on sporting events can be accepted right away, it does represent a major legal change in one of the country’s most populous states.
What are some of the key components of Illinois’ sports gambling law?
