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Entry Fee Or Wager: Why ‘Derby Wars’ Court Case Is Relevant To The Daily Fantasy Sports Wars by Daniel Wallach

A case involving a small horse racing fantasy sports site could have an impact on much larger ones like DraftKings and FanDuel.

Last week a court ruling came down in Los Angeles Turf Club v. Horse Racing Labs, LLC, Case No. CV 15-09332 SJO (C.D. Cal. May 15, 2017) — aka the “Derby Wars” case.

That ruling has sparked debate among fantasy sports legal analysts over whether this decision — which held that “entry fees” to enter a horse racing fantasy contest constituted a “wager” — could have ramifications for the mainstream daily fantasy sports industry in other contexts. That’s particularly true in lawsuits pending in Illinois, Massachusetts, New York and Texas, where similar issues are in play.

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