TLDR
- A federal court in Washington, D.C. dismissed lawsuits filed against DraftKings, FanDuel, and Caesars Sportsbook
- A Florida-based company tried to use a 1710 British law called the Statute of Anne to demand millions from betting operators
- The law allowed third parties to sue gambling winners for triple the losses of individual bettors
- D.C. lawmakers closed the legal loophole by passing the Budget Support Act for 2026
- Flutter Entertainment, which owns FanDuel, has seen its stock price drop more than 50% since the start of the year
A federal court in Washington, D.C. has thrown out a series of lawsuits that targeted some of the biggest names in American sports betting. The ruling removes what could have been a costly legal threat for the industry.
DC Gambling Recovery, a limited liability company based in Florida, filed the lawsuits against DraftKings, Caesars Sportsbook, and FanDuel. The company sought to collect millions of dollars from the betting operators.
The entire case was built around an unusual legal strategy. DC Gambling Recovery based its arguments on the District of Columbia’s version of the Statute of Anne. This law dates back to 1710, when the British Parliament passed it during the reign of Queen Anne.
The original purpose of the law was to prevent wealthy aristocrats from losing their estates through card games. It declared that gambling contracts were void and unenforceable.
The statute also contained a provision that DC Gambling Recovery hoped to use to its advantage. Under the old rule, any user who lost more than $25 in a single gambling session had three months to sue the winner and demand their money back.
If that person did not take action within three months, any unrelated third party could step in and file a lawsuit instead. That third party could then demand triple the original amount lost.
The person filing the suit would keep half the money. The other half would go to the local district government.
DC Gambling Recovery admitted it had no personal connection to any of the bettors who lost money. The company also said it never worked with anyone who actually placed bets on these platforms.
Lawmakers and Attorney General Back the Sportsbooks
The targeted companies quickly moved to have the case dismissed. Washington, D.C. Attorney General Brian Schwalb filed documents in support of the sportsbooks.
Schwalb argued that modern laws had already legalized sports betting in the district. He said the Statute of Anne no longer applied to licensed and regulated operators.
Local legislators also took action. They amended the city’s municipal code to permanently close the loophole by passing the Budget Support Act for 2026.
Defense attorneys pointed out that lawmakers had the legal right to apply this change retroactively. The city used the amended statute to address earlier incidents raised in the case.
The federal judge agreed with the defense and dismissed the lawsuits entirely. The ruling freed the sportsbooks from what had been a serious financial risk.
Flutter Entertainment Faces Stock Pressure Despite Legal Win
While the court decision was welcome news, Flutter Entertainment is still facing financial difficulties. Flutter is the Irish parent company of FanDuel and also owns the Paddy Power brand. It operates FanDuel as the largest online betting group in the United States.
Since the start of the year, Flutter’s stock price has fallen by more than 50%. Shares dropped nearly 14% in a single trading day after the company released its fourth-quarter and full-year earnings in late February.
Those financial results came in well below market expectations. The numbers raised concerns among investors.
Chief Executive Officer Peter Jackson is set to hold the company’s annual general meeting next month at its Dublin headquarters. The meeting is expected to focus on reassuring shareholders about the company’s direction.
