Banks and Credit Card Companies Hit with Consumer Fraud Class Action Lawsuit over DraftKings and FanDuel Payments

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Santa Clara, CA: A consumer fraud class action lawsuit has been filed against JPMorgan Chase & Co., Visa, MasterCard, American Express and other firms for processing payments for DraftKings and FanDuel. The complaint, filed in federal court, also names Capital One Bank and two other payment processors as defendants.The lawsuit claims the banks and credit companies should have known that DraftKings and FanDuel were running illegal internet gambling rings in violation of state and federal laws.

"ignificantly, the burden is on the payment provider to prohibit restricted transactions or risk civil or criminal punishment,"the complaint states.

DraftKings and FanDuel are the two largest players in the daily "fantasy sports industry."The game allows players to pick a roster of professional athletes from all of the major sports and win cash prizes if their team wins that night's, or week', games, depending on the sport.

Earlier this month, New York Attorney General Eric Schneiderman sent DraftKings and FanDuel cease-and-desist letters The stating daily fantasy sports companies are misleading New York consumers into thinking their services are like traditional fantasy sports and are causing the same kinds of social and economic harms as other forms of illegal gambling.

"Daily fantasy sports is neither victimless nor harmless, and it is clear that DraftKings and FanDuel are the leaders of a massive, multibillion-dollar scheme intended to evade the law and fleece sports fans across the country,"Schneiderman said in a statement.

The plaintiffs are represented by Hunter J. Shkolnik and Annie E. Causey of Napoli Shkolnik LLP and Brittany Weiner of Imbesi Law PC. The case is Guttman et al v. Visa Inc. et al, case number 1:15-cv-09084, in the U.S. District Court for the Southern District of New York.

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