The hits just keep on coming for DraftKings.
The industry leader is at the center of a new lawsuit by the NFL’s Player’s Association (NFLPA). The group alleges that DraftKings plans to end a rights deal and cease making payments. While the NFLPA has yet to announce the amount they seek in the lawsuit, it is estimated to be around $65 million.
The case will now be reviewed in New York Federal Court before a trial dates are set.
While DraftKings Sportsbook is a major NFL sponsor, this lawsuit centers around the industry giant’s failed NFT market. The company invested significantly in opening an NFT marketplace, but the market has crashed since then. As a result, DraftKings closed their NFT marketplace and now wants to leave their contract with the NFLPA.
The NFLPA’s deal with DraftKings involved using the names, images, and likenesses of the league’s players on NFTs. A monthly payment plan was set up to satisfy the deal, but now the sports betting and DFS giant wants out.
"The impetus for DraftKings' decision to repudiate its license agreement with Plaintiffs is simple: the once white-hot market for NFTs has cooled down," attorneys for the NFLPA wrote in the complaint. "DraftKings is also facing a civil lawsuit and regulatory inquiries into its product. Buyers' remorse, however, is not a basis to terminate a contract."
The DraftKings NFT marketplace closed last month primarily due to a lawsuit the company was facing in Massachusetts. The Bay State sued DraftKings over the controversial offering, claiming the company violated security laws. Given the decline of NFTs and the cost of the lawsuit, DraftKings chose to shut the marketplace down.
While the decision to cut the marketplace seems wise, the NFLPA lawsuit could lead to the failed platform costing the company even more money.
In addition to the NFT fallout, DraftKings’ sportsbook has also come under fire. They recently suffered a public embarrassment when they announced they would add a surcharge to winnings in four markets. Public outcry and a lack of support for other operators forced them to reverse course just days later, but the damage to their reputation was already done.
DraftKings also recently lost a motion to dismiss another case in Massachusetts. Several bettors brought this lawsuit, claiming the advertising around its welcome bonus was intentionally misleading. That is a bad sign for DraftKings, who could face similar lawsuits if this one is lost.
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The AGA has come out strongly against the SAFE Bet Act, describing the proposed bill as a slap in the face to the efforts of states and their regulators. If passed, the bill would move almost all regulatory control over sports betting to the federal government.
Caesars Sportsbooks has been approved to launch 53 sports betting kiosks across Washington, D.C., replacing the ones previously operated by GameBetDC. The move is the result of sports betting expansion language included in the District’s 2025 budget.
Fanatics Sportsbook launched its platform in Washington, D.C., on Thursday, making it the fifth operator to go live in the market. Fanatics is now available in 22 markets across the US, making it one of the most widespread sportsbooks in the country.
Two lawmakers have proposed the SAFE Bet Act, which would completely overhaul the US sports betting industry. The proposal would reset the market, handing control over to the federal government. The bill would also add severe advertising restrictions and protections for bettors.
Circuit Court Judge Green has ruled that a lawsuit challenging a sports betting initiative lacked the evidence needed to keep it off the November ballot. That means residents will have a chance to legalize the industry in the upcoming election.
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The IRS has sent out a press release warning bettors against using unregulated sportsbooks when wagering on the upcoming NFL season. They estimate that the illegal sports betting market in the US to be worth northwards of $700 million.
The New Jersey Division of Gaming Enforcement has levied a $33,000 fine against bet365 for offering unapproved betting options on its sportsbook. The wager in question revolved around events that were on tap delay, making them illegal under New Jersey law.
The AGA estimates that the NFL season will see around $35 billion in wagers, a 30% increase from last year. More states starting the season with legal sports betting, an expanded D.C. market, and Bovada's downfall are expected to lead to more wagers this season.
A study from the University of Bristol showed that most US sportsbooks’ social media posts do not include verbiage about responsible gaming. The AGA confirmed the study was likely correct but also clarified that sportsbooks are not required to include it in non-sponsored posts.
Hard Rock Bet has launched its online sportsbook in Illinois, the eighth market it is now live in. The brand also opened a new retail sportsbook in Rockford, giving it a significant presence in the state soon after becoming the sole operator in Florida.
DraftKings and the Lac du Flambeau Band of Lake Superiors Chippewa Indians have agreed to a deal that will allow for a new retail sportsbook in Wisconsin. The new sportsbook will open at a casino up north, making them the first outside operator to do so.
A Massachusetts court has rejected DraftKings Sportsbook's motion to dismiss a lawsuit over its deposit match welcome bonus. That means the Public Health Advocacy Institute lawsuit will proceed, which accuses DraftKings of deceptive advertising about the offer.
A new lawsuit has been filed challenging a recent sports betting initiative to get legalization on the ballot in November. Though the group behind the initiative gathered enough signatures, the lawsuit alleges that confirming those signatures was done incorrectly.
BetMGM no longer requires bettors in Nevada to use unique accounts; instead, it allows them to use funds and bonuses from accounts set up in other states. They are the first Nevada online sportsbook to offer this seamless experience.
The Massachusetts Gaming Commission has voted unanimously to remove events from the controversial International Boxing Association from the state’s bet catalog. The move comes soon after an Olympics scandal that revealed Russia’s control of the league.
The MGC has announced that a roundtable discussion about limiting sportsbook customers will be held before the first week of October. While the state’s active sportsbooks are expected to participate, they did not attend the talk hosted earlier this summer.
Reports are that Washington D.C., is demanding documentation from Intralot as a part of an ongoing investigation. Attorney General Brad Schwalb has yet to confirm any details, including who the target of the investigation is.
The Missouri Attorney General has approved an initiative to get the topic of sports betting put on the November ballot. This will allow residents of the Show-Me state to decide the issues themselves, circumventing years of legislative roadblocks.
DraftKings has announced that it will no longer move forward with a controversial surcharge on betting winnings in four major markets with high tax rates. The decision comes soon after FanDuel other operators declined to follow suit by adding similar charges.
DraftKings stunned the sports betting industry by announcing a new surcharge on all customer winnings in four US markets starting in 2024.
