10.18.2022. Daily highlights

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FanDuel wins in $1bn legal battle

The case discussed the breach of fiduciary duty claims relating to Paddy Power Betfair’s acquisition of FanDuel. As a result, FanDuel claimed victory after the New York appeals court dismissed a $1bn lawsuit. It was brought by its founders and former directors over breach of fiduciary duty claims.FanDuel promos

Originally the deal stated for FanDuel, now Flutter Entertainment, to pay $158m upfront. Afterward adding $458m of the total $612m purchase price settling via share dealing. The original deal was to split the existing shares between common shares. FanDuel founders, former employees, and early investors in the business had these shares, and so-called ‘preferred shares’ issued to later-stage investors. Preferred shareholders could sell their shares in a deal valued at an agreed total of $555m, with any amount paid by Paddy Power Betfair over this amount split among common shareholders.

Court case details

The company was only valued at $559m, leaving the firm’s common shareholders without much for their respective stake. As a result, the founders of the business, including former CEO and co-founder Nigel Eccles and a group of over 100 former shareholders, filed a lawsuit in Scotland in August 2018 over the deal.

Allegations made by the group include that private equity investors KKR & Co. and Shamrock Capital Advisors LLC had conspired with members of the FanDuel board to deprive other shareholders of profits arising from the Paddy Power deal. This lawsuit was ultimately dismissed, with a secondary challenge being made in the New York courts by US-based shareholders in 2020, which sought to apply US law to the treatment of the case.

In respect of the US-based case, the group was successful. However, FanDuel and representatives of KKR and Shamrock launched an appeal over the ruling, suggesting it should be thrown out on the grounds the company is incorporated in Scotland and therefore comes under Scottish law.

In Scottish law, directors owe a fiduciary duty to their companies rather than investors. However, in hearings before the New York Supreme Court, justices applied the so-called ‘internal affairs’ doctrine to the case. This legal precedent, which subjects a company to laws based on where it is incorporated, applies only to current and not former board members.

Considering the case, the panel asserted that Scottish law, not New York law, governed the claim, further asserting that company directors owed fiduciary duties to their corporation and not to shareholders, effectively voiding the claim. Appeals panel members also dismissed the internal affairs doctrine claims concerning which law should be applied to only those defendant directors of the business who were at FanDuel when the lawsuit was launched in 2018.

Read more on FanDuel adding $10 to support Proposition 27 in California here!

Source: EGR.global  

Massachusetts sports betting rollout updatesmassachusetts gaming commission

Massachusetts Gaming Commission (MGC) has confirmed that it has recruited two external companies to launch sports betting in January. US-based management consultancy company RSM US will help with the background checks of prospective sportsbook license applicants.

MGC executive director Karen Wells shared, “That is going to be huge for our implementation timeline. It’s a great win for the MGC to get them on board and have that set to go. I know the team is really excited to have this kind of level of help and this level of professionalism. As you know, we all have our day jobs, we still run an agency here. So bringing in that assistance is critical to us with the timeline,” she added.

The Massachusetts tax rate for land-based and online sportsbooks is at 15% and 20%. Respectively, with a license fee costing $5m for five years. More than 40 operators indicated their interest in obtaining a Massachusetts license when the state conducted a notice of intent solicitation exercise last month. This list includes 888, DraftKings, FanDuel, BetMGM, Penn Entertainment, PointsBet, Hard Rock Digital, and bet365.

New BetRivers brand ambassador – Bob McCown

betrivers sports brand

Rush Street Interactive (RSI) has recruited Bob McCown as a new brand ambassador. He signed a multi-year deal with the Canadian sports talk radio legend.  Under the deal, McCown will participate in various adverts and create exclusive content for the BetRivers network.

Overall, McCown has more than 30 years of experience in both hosting and anchoring sports shows in Canada. This includes SportsLine, TSN’s The Business of Sports, and Sportsnet 590 The Fan’s Prime Time Sports. McCown has his own podcast series ”The Bob McCown Show” featuring John Shannon. They broadcast daily across the Sirius XM satellite radio network. Now it will air across the BetRivers Network with his podcast colleague Shannon appearing at meet-and-greet events across the country.

McCown shared, “If there’s one thing I’ve learned through my career, it’s that sports fans want to go beyond surface-level game calls and get into what’s really driving their favorite players. I’m thrilled to team up with an industry leader like BetRivers and work with them on delivering the insights and stories Canadians really want to hear!”

Source: EGR.global

Liga Tarasova has a history of quality assurance and leading teams in an outsourcing company. Currently, she is working remotely as an Editor in Chief for Onlinegamblers.com. She stands for fair and safe gambling for people in the USA. Not long ago, she lived in Malta, the global iGaming hub, and worked at an iGaming company offering cloud-based product and platform services to B2B partners. Liga’s passion is visual arts and interior design.

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