Fantasy Sports Game Providers Win Victory in New Jersey Court

Lawsuit Vs. ESPN, CBS Sportsline, and the Sporting News Dismissed

In the U.S. District Court of New Jersey last Friday June 22, Judge Dennis Cavanaugh dismissed a lawsuit filed by a Charles E. Humphrey, Jr. against ESPN, CBSSportsline, The Sporting News and other fantasy sports game providers. Humphrey claimed in his suit that
 fantasy sports are form of gambling because the fantasy sports providers offer pay for play online fantasy sports games. The suit was filed on June 20, 2006, and Humphrey sought damages from the fantasy sports gamers citing several states' "qui tam" laws. Even though Charles E. Humphrey, Jr. has never played any of the fantasy sports games himself.

"This is a huge day for the fantasy sports industry" said Bill Heberer of Manatt, Phelps and Phillips LLC, which represented CBSSportsline and The Sporting News. Judge Cavanaugh cited the recently passed Unlawful Internet Gambling Enforcement Act, stating "that law confirms that fantasy sports leagues such as those operated by the defendants, do not constitute gambling as a matter of law". Cavanaugh thus provided future guidance of the legality of the fantasy sports industry within the decision.

This decision proves one thing for sure. That is that even in this world gone mad, that sometimes Judges still make decisions that actually make sense. The most head-scratching aspect of this case is that Humphrey didn't even try to hide the fact that he has never played any fantasy sport. In the strictest sense of the word, I suppose one could call fantasy sports "gambling". In many leagues, including one I participate in, there is an entry fee with prizes for division winners, the highest weekly score, the most total points scored for the regular season, and finally the most points in the postseason.

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I'm not sure, don't speak legalese, but it was in the press release. Yeah, as a fantasy football writer and player, it would have been a disaster for millions of us. Thanks for reading, Michael.

Posted on 06/28/2007 at 6:06:00 PM

thats hilarious, that Humpherey character sounded like he was in need of some money or something. Why in the world would you sue if you don't play anyways. Can you imagine if that had passed? All the online games that have tournaments and that like Yahoo Games, and others similar. Talk about fuel on the fire! Hey I have not seen the term qui tam before. What is that?

Posted on 06/28/2007 at 6:06:00 PM

wow i hadnt heard about this yet and i live in jersey. great article

Posted on 06/27/2007 at 6:06:00 PM

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