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Thursday, March 28, 2024

DraftKings, FanDuel allegedly engage in illegal gambling

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LOS ANGELES (Legal Newsline) – An Orange County man has brought a class action lawsuit against multiple fantasy sports organizations for their allegedly deceptive and unfair practices and violations of the Racketeer Influenced and Corrupt Organizations Act by working in concert to allow their employees to participate with each other's gambling enterprises and in violation of Title 18 of United States Code Section 1962(c).

Daniel Hale, on behalf of himself and all others similarly situation, filed suit on Nov. 12 against DraftKings Inc. and FanDuel Inc. in the U.S. District Court for the Central District of California, citing violations of the Unfair Competition Law and Consumer Legal Remedies Act, the California Business and Professional Code, negligence, fraud and misrepresentation, negligent misrepresentation, civil conspiracy and unjust enrichment.

Hale alleges that he defendants allowed their employees to participate in each other's fantasy sports gambling enterprises/contests despite the unfair advantage this gave them due to their nonpublic material knowledge and without advising their paying customers of this fact. Hale further claims that the defendants acted in concert and both benefited from allowing each other's employees to participate in their endeavors to the detriment of their paying customers and that the defendants engaged in mail fraud, wire fraud and the use of interstate facilities to conduct unlawful activity.

Hale demands a jury trial for this class action and states that the amount of the matter in controversy exceeds $5,000.000. He seeks compensatory and treble damages as well as costs and injunctive relief.

Hale is represented by attorneys Mark P. Robinson Jr., Kevin F. Calcagnie, and Daniel S. Robinson of Robinson, Calcagnie, Robinson, Shapiro Davis Inc. located in Newport Beach, California and attorneys Alan Greenberg, Wayne Gross and Michael Katz of Greenberg Gross LLP from Costa Mesa, California.

U.S. District Court for the Central District of California case number 8:15-CV-01879-JLS-KES

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