Cheating Scandals: DFS player files class action lawsuit against MLB

The fallout from the Astros and Red Sox cheating scandal continue as a DFS player has sued MLB, the Astros, and Red Sox alleging their games and thus the DFS competitions were tainted.

We have already seen a sportsbook refund losing tickets because of the Astros cheating scandal but now we have a full-on lawsuit.  A DraftKings player has filed a class-action lawsuit against Major League Baseball, MLB Advanced Media, the Houston Astros, and the Boston Red Sox alleging “contests from 2017 – 2019 were tainted by cheating and compromised”.  You can probably gather 99% of what is going on based off the quote but if you are a legal junky, you can find the full filing here.

The gambling segment of MLB and sports fans has been growing like wildfire over the past few years.  MLB had previously spurned any formal relationship with gambling due to previous gambling scandals, notably involving Pete Rose and the Black Sox but that changed in 2019.  Last year, MLB entered into a deal with DraftKings to be its official gaming operator and another deal with MGM Resorts.

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The part where this gets interesting is will a scorned better who lost money on Astros or Red Sox games follow suit and try to file another class-action lawsuit on behalf of those who lost money at MGM.  The plaintiff could use the same language about the game being tainted, question the validity and results of Astros/Red Sox games, and leave it up for the court to decide.

MLB will have a number of arguments but probably rely on the fact that the league had no credible information on the sign-stealing operations and thus is not liable (whether you believe that or not is up to you).  The Astros and Red Sox alike could likely deny knowledge of the scheme from the top and that they aren’t liable for the actions of rogue actors in their organization*.

*NOTE: MLB/Astros/Red Sox that first bit of legal advice is free, you’ll need me on retainer for more.  Also, I’m not a Lawyer of any sort, not even close. Take everything in this post with an extra helping of salt.  

MLB is in unprecedented territory.  The MGM and DraftKings deals were a savvy way to grow interested in the game but this lawsuit seems to be an unintended consequence.  Now, MLB has an army of lawyers and K Street Lobbyists that have successfully defended the interests of Rob Manfred and the owners.

It doesn’t seem likely this lawsuit would hold up in court, but it will be another interesting legal storyline, like the Oakland A’s Stadium, Orioles/Nats MASN dispute, and countless minor league pay lawsuits, to follow.