Oregon residents in class action against daily fantasy sports operators

News on 27 Jan 2016

The latest “loser gambling” class action law suit to be filed against daily fantasy sports market leaders FanDuel and DraftKings was launched in the US District Court in Portland, Oregon Monday by resident Brandon Peck on behalf of himself and more than 100 other Oregonians who claim to have lost money in the past three years betting on the two DFS websites.

The action is one of around thirty launched in different US states where players are taking advantage of the legal difficulties DFS sites are facing and antiquated state statutes that allow gambling losses to be reclaimed.

The $5 million Peck filing requests the court to halt DFS operations in Oregon and order FanDuel and DraftKings to pay back players double the amount they’ve “wrongfully lost.”

The filing alleges that players were duped into participating in an illegal gambling activity that gave an unfair advantage to DFS employees, who also participated in the daily competitions.

Representing Peck, local attorney Thomas D’Amore argues in the filing that DraftKings and FanDuel violate Oregon law, which expressly prohibits “gambling” and “betting.” The filing states other legal opinions on DFS from different US states.

D’Amore contends that DFS games require very little to no skill; that the outcomes are determined largely by chance and “return casino-type odds. ” Many DFS customers “lack even a rudimentary understanding of sports, or strategy in general” and yet place wagers and “lose and win based on pure luck,” he claims.

The DFS operators have yet to comment on the new action.

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