DraftKings reaches deal with Illinois Attorney General on expedited court schedule

DraftKings has reached a deal with the Illinois Attorney General’s office on an expedited court schedule to resolve the question of the company’s legal standing in the state.

According to ESPN’s David Purdum, terms of the deal include a deadline of Jan. 22 for both parties to respond to the complaints by Jan. 22 with a trial set for late June, if necessary. Both parties also agreed to forego any other legal action against one another related to the legality of daily fantasy sports.

From Randy Mastro, attorney for DraftKings:

“We are pleased that we have reached agreement with the Illinois Attorney General’s Office today on an expedited court schedule ‎for determining the legality of the daily fantasy sports contests that DraftKings is offering in Illinois. We remain committed to providing DFS to the hundreds of thousands of loyal Illinois fans who love the game, and we look forward to our day in court, where we are confident we will prevail.”

FanDuel is reportedly pursuing a similar deal with the Attorney General’s office.

Illinios AG Lisa Madigan ruled on Dec. 23 that daily fantasy sports constituted illegal gambling according to state law and asked companies to add Illinois to their list of prohibited states. Both FanDuel and DraftKings quickly filed suit against the AG and have continued to operate as usual. Tuesday’s deal ensure a continuance of the status quo through trial.

DFS proponents are hopeful it won’t come to that. Illinios State Representative Michael Zalewski has introduced a bill championed by the industry as an example of friendly legislation. It would legalize DFS contests and install regulations without onerous fees and taxes.

Zalewski told ESPN that he hopes to push the bill through quickly.

“It’s certainly my hope that we can get it passed [by end of the session],” Zalewski told ESPN.com on Tuesday. “If I can convince enough of my colleagues that this is a good consumer protection bill on a new form of technology, I think we can.”

Illinois represents just one front in the ongoing legal struggles of DFS companies. Their standing in New York is especially tenuous. A panel of judges will decide next week whether they may continue operating in New York as they await a trial presumably later in 2016.