Illinois AG agrees to trial schedule
December 30, 2015 10:55 AM
by Phil Hevener
Boston-based DraftKings appears set to continue doing business in Illinois for at least several months, according to an agreement with Atty. Gen Lisa Madigan this week that sets a schedule for hearings and a June start of a trial if necessary.
The agreement with Madigan will probably also apply to New York-based FanDuel, which has filed its own suit in Illinois seeking to block the potential impact of Madigan’s opinion that said the two giants in the daily fantasy sports business are selling what they call contest entries that are illegal gambling under current state laws.
DraftKings filed its challenge to Madigan in Cook County while FanDuel filed a suit in downstate Sangamon County and did not immediately respond to queries about whether it will continue doing business with Illinois customers while the legal dance continues.
Illinois lawmakers who want to see the fantasy sports business continue – but with regulations that protect all interests – appear content to await the outcome of courtroom action that will presumably tell them what they need to do by way of rewriting current laws
DraftKings has about 256,000 players in Illinois who have paid more than $92 million in entry fees in 2015, generating more than $9 million in revenue for the company. These are figures in the company’s Illinois suit.
The basic argument here, as it has been in one jurisdiction after another, has the companies contending that the competition in which they sell entries are games of skill.
Madigan and other AGs have simply said, no, it’s illegal gambling.
Phil Hevener has been writing about the Nevada gaming business for more than 30 years. Email: PhilHevener@GamingToday.com.