Key Moments:
- A federal court in Washington, D.C. dismissed lawsuits brought by DC Gambling Recovery against leading sports betting companies.
- The plaintiffs attempted to use a 300-year-old statute to claim millions from companies including DraftKings, Caesars Sportsbook, and FanDuel.
- Flutter Entertainment’s stock price has fallen by more than 50% since the beginning of the year, with a nearly 14% drop after its February results.
Court Sides with Operators Over Outdated Law
A federal judge in Washington, D.C. has thrown out lawsuits that could have imposed enormous financial penalties on top sports betting companies. DC Gambling Recovery, based in Florida, filed legal action against companies such as DraftKings, Caesars Sportsbook, and FanDuel, owned by Flutter Entertainment. The case centered on the District’s adaptation of the “Statute of Anne,” a law passed in 1710 to protect British aristocrats from losing enormous sums at the gaming table. This law nullified gambling contracts and provided a method for third parties to seek damages from winners if losers did not act within a set timeframe.
The Attempted Use of the Statute of Anne
DC Gambling Recovery pursued its claims using a legal quirk linked to the ancient legislation. The statute allowed that if someone lost more than $25 in a single session and did not sue the winner within three months, a third party could step in within that window to claim triple the lost amount. This setup meant that anyone not directly involved in the original gambling could pursue a large payout, splitting the final amount evenly between themselves and the local government.
| Statute of Anne Mechanism | Details |
|---|---|
| Loss Threshold | Over $25 in one sitting |
| Timeframe for Loser to Sue | Three months |
| If Loser Does Not Sue | Any third party can sue for triple damages |
| Settlement Distribution | 50% to filer; 50% to district government |
The owners of DC Gambling Recovery acknowledged that they did not have personal connections to any of the consumers who lost money, nor did they collaborate with any user who suffered losses. Their intent was to benefit from the statutory loophole, targeting accumulated user losses on platforms like DraftKings and FanDuel.
Legislative Response and Case Dismissal
The companies targeted in the lawsuit responded swiftly, petitioning the court for dismissal. Washington D.C.’s Attorney General Brian Schwalb supported the sportsbooks, arguing that legalized sports betting within the district rendered the old statute irrelevant for current, licensed operations. Legislators acted to permanently close the loophole by amending the municipal code through the Budget Support Act for 2026, eliminating the application of triple damages and allowing retroactive enforcement. The federal court agreed with the defense, leading to the dismissal of DC Gambling Recovery’s lawsuits and removing a major financial threat for the operators.
Flutter Entertainment’s Continuing Market Challenges
Despite gaining relief from the lawsuit, Flutter Entertainment remains under pressure. The company, which is listed on the New York Stock Exchange, has experienced a decline in its share price of over 50% since the start of the year. In late February, following the release of its fourth-quarter and full-year financial results, shares in Flutter slid nearly 14% in a single session. These disappointing results were below market expectations and concerned investors. Flutter CEO Peter Jackson is set to address these issues at the upcoming annual general meeting at the company’s headquarters in Dublin.
- Author
Daniel Williams
