FanDuel and DraftKings are both facing legal pressure. DraftKings has just been hit with a new lawsuit by a Michigan resident, alleging the gambling firm failed to follow prescribed consumer protection guidelines, resulting in harm.
FanDuel Won’t Have Truck with Century-Old Statutes
FanDuel, on the other hand, is grappling with the legalese of a statute that is more than 300 years old, and that is used to bring a case against the company. The Flutter Entertainment-owned company’s response? Have it dismissed.
DraftKings and BetMGM are also targeted in the same complaint. The sportsbook is pushing for the dismissal of the complaint. Based on the Statute of Anne, which mandates that gamblers may recover their losses above a certain threshold from the house.
The law’s original purpose was to reverse bankruptcies and ease the pain of gambling addiction, which was not articulated in as many words in the 18th century when the law statute was introduced. But from today’s perspective, it’s a law that feels grossly arbitrary, allowing gamblers to play without risk in a sense.
In the legal system of the United States, however, such prod and pull at statutes is normalized. The lawsuit is unlikely to win even if it were to go before a judge. Washington, DC AG Brian Schwalb is in favor of the dismissal as the Statute of Anne does not apply in the age of federally-legalized and recognized sports gambling.
However, not everyone agrees. DC Gambling Recovery, for example, argues that anyone who has lost more than $25 should be eligible to have their losses returned, but the legal argument is still based on a very dated view.