Oregon Class Action Suit Claims DFS Sites Violating State Laws: Seeks $5 Million

A class action lawsuit filed in the state of Oregon claims that Daily Fantasy Sports sites DraftKings and FanDuel are in violation of state laws.

More specifically, the complaint alleges that both companies operate as illegal online sports wagering while providing an unfair advantage to company employees.

Complainant Brandon Peck references an incident that occurred back in October whereby an employee of DraftKings was found to have posted critical player data then went on to finish in second place in a FanDuel contest winning more than $300,000, the presumption being he had used said data. 

The suit, filed Monday, also cites actions in which states such as Georgia and Nevada are currently challenging the fantasy sports league sites.

Peck's lawyer argues the games require very little to no skill, but rather chance, a key component of gambling. 

Many of the companies' customers "lack even a rudimentary understanding of sports, or getting strategy in general'' and yet place wagers on the two websites and "lose and win based on pure luck,'' Peck's lawyers wrote.

- Aaron Goldstein, Gambling911.com

By Aaron Goldstein