Illinois Gambler Files FanDuel Lawsuit to Recover $100 Loss

The FanDuel Lawsuit: A Landmark Case in Illinois gaming law

In a legal battle that caught the eyes of both daily fantasy sports enthusiasts and legal experts alike, Colin Dew-Becker’s attempt to recoup a $100 loss from a FanDuel contest against his friend, Andrew Wu, escalated into a landmark case. This legal tussle wasn’t just about a triple-digit sum; it was about setting precedents in Illinois gaming law and questioning the legality of daily fantasy sports (DFS) on platforms like FanDuel.

Understanding the Legal Journey

The Illinois Supreme Court ruled on April 16, 2020, in *Dew-Becker v. Wu* (2020 IL 124472) that daily fantasy sports contests on FanDuel are predominantly skill-based and thus exempt from the definition of gambling under 720 ILCS 5/28-8(a), as they qualify as a ‘bona fide contest for the determination of skill.’

Dew-Becker’s legal journey began with his challenge against Wu, utilizing an Illinois law aimed at combating illegal gambling. The objective was clear: to establish FanDuel’s DFS contests as illegal gambling activities. However, this proved to be an uphill battle, with the case being dismissed at every legal level— from the district court to the Illinois Supreme Court.

The Courts’ Rulings

The courts provided multiple reasons for dismissing Dew-Becker’s claim, emphasizing the legal and logistical challenges in applying a recovery law from the late 1800s to modern-day online DFS. Notably, the Illinois Supreme Court offered a fresh perspective, dismantling the lower courts’ arguments and introducing significant discussions on the nature of DFS as a skill-based activity.

FanDuel Lawsuit: Skill vs. Chance

The crux of the Supreme Court’s ruling rested on the “Predominant Factor Test,” which assessed whether DFS contests are games of skill rather than chance. The court concluded that skill is the predominant factor in DFS, citing extensive studies to support this view. This interpretation played a pivotal role in affirming the legality of FanDuel’s DFS contests under Illinois law.

Additionally, the court addressed a 2015 Attorney General opinion that had labeled DFS as illegal gambling. With the overturning of PASPA in 2018 and the introduction of the Sports Wagering Act in 2019, the legal landscape shifted, rendering the Attorney General’s stance obsolete. The Supreme Court’s rejection of the “any chance test” further solidified DFS’s status as a skill-based competition.

The Dissenting Voice: Justice Karmeier

Justice Karmeier’s dissent highlighted an alternative interpretation of the Predominant Factor Test, suggesting that DFS could still be considered a game of chance. Despite this, Karmeier ultimately agreed with the majority’s verdict due to the legalization of sports betting, which encompasses DFS contests under the Sports Wagering Act. This nuanced take underscores the complexity of defining gambling in the context of skill-based online games.

The Aftermath and Its Implications

While Dew-Becker’s personal quest for $100 ended in defeat, his case has left an indelible mark on Illinois gaming law. It established Illinois as a jurisdiction that favors a more permissive approach to gaming, recognizing the skill elements in DFS. This legal precedent not only clarifies the status of DFS in Illinois but also influences broader discussions on gaming legislation and the evolving nature of digital sports contests.

The FanDuel lawsuit, therefore, serves as a cornerstone case for future disputes and legislative efforts related to DFS and similar online gaming activities. It underscores the challenges of applying century-old laws to contemporary digital platforms and sets a precedent for how skill-based gaming contests are perceived and regulated.

As we look to the future, the implications of this case extend beyond Illinois, potentially guiding other states in their legislative and judicial approaches to DFS and online gaming. The balance between skill and chance, the impact of technological intermediaries, and the evolving legal frameworks will continue to shape the landscape of digital sports and gaming.