There's a good chance that you saw a commercial from FanDuel or DraftKings last season. These commercials consisted of ordinary people explaining how they had won millions of dollars from playing fantasy games. Naturally, people flocked to the site to find out how they too could win money. The result? DraftKings and FanDuel quickly expanded to the point where millions of people were playing their daily fantasy games. But their sites were not without controversy. And now the two giants will face another lawsuit.

Today's Announcement.

Anti-gambling groups announced the lawsuit in a public video on Twitter, denouncing the practices of DraftKings and FanDuel, who they claim are actively promoting gambling.

The lawyers in the case pointed to the fact that addiction to gambling is rampant throughout America and went on to suggest that the daily fantasy sites are doing nothing to help. The two companies just faced similar lawsuits, but will now have to battle again for the right to continue operating in the United States. The two companies have a massive and well paid legal team, but will need to hold onto fantasy operations in New York if they have any hope of surviving. Past controversies within the industry are a bad sign for these daily fantasy companies that will again need to defend themselves from litigation.

Controversy in the Industry.

The daily fantasy industry claims that their games consist of skill and not luck, a factthat has given the two companies the right to operate in the U.S. But the lawyershave argued that poker, which also contains an element of skill, is comparable. Poker has been banned in the United States thanks to its gambling nature.

There were also other notable controversies within the two sites, as employees had access to data that gave them advantages when playing on the two sites. One of these employees, Ethan Haskell, had reportedly cheated by switching his lineup around based upon ownership percentages.

The other controversy came about when it was revealed that high rollers were getting preferential treatment from the sites.

These players would enter hundreds of lineups into contests, dramatically increasing their chances of winning and reducing the chance for any normal fantasy player to win money. These players also used data driven algorithms that included factors like the weather and matchups to essentially steal money from daily fantasy players who were seen as fish.


Some players use DraftKings and FanDuel for fun, entering one contest a week and hoping that they will win a big cash prize. Others actually do have an addiction and have lost plenty of money on the site. Who is in the right here? Should these daily fantasy sites be shut down, or should they be allowed to continue operating?

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