Fantasy/Gambling

Four New York citizens – backed by an anti-gambling government reform group – filed suit last Wednesday against New York Governor Andrew Cuomo and the state gambling commission, alleging that New York’s new law violates the state’s constitutional prohibition on gambling expansion. The lawsuit, however, likely faces a lengthy, uphill climb.

On Wednesday, members of the House Subcommittee for Commerce, Manufacturing, and Trade gathered on Capitol Hill to discuss the current direction of the nascent fantasy sports industry.

Last week, some of the most distinguished lawyers of our generation gathered in a cramped Philadelphia federal courthouse for a hearing that could have a profound effect on the timeline to bring legal sports betting to the whole of the United States. While the results of the hearing remain to be determined, it appears – again – that most Americans will have to wait a bit longer to place a wager on their favorite club.

It’s been a tumultuous few weeks for the “daily fantasy sports” (DFS) industry. Among other things, there has been an investigation into the potential misuse of non-public data by a major DFS company employee; an inquiry into DFS by the New York Attorney General; a “preliminary” probe by the FBI and U.S. Department of Justice into the business model of DFS; the filing of numerous class actions against major DFS operators; and reports that a federal grand jury was convened in Florida by the U.S. Attorney’s Office to consider potential violations of federal and state law.

The timeline to bring legal sports betting to the United States was pushed back significantly after the Third Circuit Court of Appeals ruled, in a 2-to-1 decision, against Governor Chris Christie and the State of New Jersey earlier this week. The decision by the federal appeals court in Philadelphia upheld a lower-court ruling that had voided legislation enacted by New Jersey legalizing sports gambling.

The popularity of fantasy sports has exploded in recent years, particularly with the emergence of "daily" games. But how did we get here? And more importantly, is it even legal?

If New Jersey Governor Chris Christie has his way, the next time New Jersey hosts a Super Bowl, fans may be able to walk down the street and drop a wager on their favorite NFL team before the big game. Christie’s dream, however, has faced numerous speed bumps, and with his options dwindling, Christie made one final effort, pushing all his chips in the middle of the table.