Illinois Attorney General Lisa Madigan filed motions to dismiss the lawsuits brought by Boston-based DraftKings and New York-based FanDuel after she issued an opinion that both these daily fantasy sports sites were illegal in her state. She said she was only doing her job and there were no harm done against the sports sites.
Miami Herald reported that DraftKings and FanDuel's lawsuits claim that their contests are games that involve skills, and are allowed by Illinois' state law. She released an advisory opinion in December saying that the sports betting in these sites are illegal gambling. Her statement came after legislators called for changes in the industry.
The two daily sports site feared that her opinions could destroy a "legitimate industry." DraftKing's attorney Randy Mastro said their operations will still continue in Illinois. Meanwhile, Madigan said she hasn't ordered to cease operations or file any litigation against the sports site. However, her opinion has prompted New York and Nevada rulings to ban these sites.
USA Today wrote that in the separate filings, she said she was only fulfilling her duty as an attorney general when she was asked to issue a legal opinion, which gives her sovereign immunity against the two sports sites' lawsuits. In the memorandum, Madigan wrote that that "The opinion merely concluded that daily fantasy sports contests offered by FanDuel and DraftKings violate the criminal code."
However, according to Legal Sports Report, Madigan's opinion released in December included assertions that DraftKings and FanDuel should stop doing business in Illinois. She said, "In light of the opinion, we expect that both FanDuel and DraftKings will amend their Terms of Use to include Illinois as an additional state whose residents are not eligible to participate in contests unless and until the Illinois General Assembly passes legislation specifically exempting daily fantasy sports contests from subsection 28-1(a) of the Illinois Criminal Code of 2012."
However, Madigan's latest memo emphasizes that there is no harm done for the plaintiffs. It only discourages consumers and vendors from coordinating with the sponsorship contracts of the Illinois operations of these daily fantasy sports site.
