Illinois AG bites back at FanDuel and DraftKings

Lisa Madigan has filed motions against both operators after she ruled DFS was illegal under state law last month 

Illinois Attorney General Lisa Madigan has filed motions to dismiss lawsuits filed by DraftKings and FanDuel after she published an opinion that daily fantasy sports is illegal gambling under state law. [private]

Madigan argued there were no grounds for either operator to sue as she had sovereign immunity and was simply fulfilling her duties as AG when asked by the state legislature to make a legal opinion.

She also said both FanDuel and DraftKings could not show any hardship in the case, which is necessary to convert their disagreement with her opinion into “a ripe justiciable controversy”.

In her filings, the AG said she did not order FanDuel or DraftKings to cease operations and had not pursued or threatened criminal or civil litigation.

But when Madigan issued her opinion she asked both operators to amend their terms and conditions to say Illinois was among the states whose residents were not eligible to participate in contests.

FanDuel and DraftKings likely took this as a request to stop doing business in the state, but in the filings Madigan said she “never made such a request”.

“The Attorney General sent FanDuel the advisory opinion along with a cover letter stating that Madigan expected FanDuel to follow the law,” the latest filing said.

“Elementary statements informing a party of an expectation they will comply with Illinois law do not render FanDuel’s dispute ripe regarding the AG’s opinion, especially on criminal law she doesn’t enforce.”

Madigan first published her opinion last month, with FanDuel and DraftKings filing their lawsuits less than 24 hours later.