Beleaguered daily fantasy sports operator DraftKings is reeling tonight after a federal judge refused to hear a “problem gambling” case against the company in his court.

Judge Harry S. Mattice Jr., that the suit brought against DraftKings by plaintiff Erica Miller did not meet the standard to be heard in a federal court. Federal courts can only hear cases in which the damages exceed $75,000. Miller’s complaint only seeks to recover $46,000 her husband lost while “gambling” on the site.

This case is important to DraftKings for a number of reasons, not the least of which is that they’d certainly like to avoid any association the word, “gambling” (in the United States, anyways). DraftKings, which is fighting to keep its business legal in almost every US State,

Judge Mattice didn’t make any mention of the particulars of the Miller’s case and kept his ruling strictly to the $75,000 bar. DraftKings’ attorneys argued that Miller case could exceed $75,000 if the plaintiff pursued punitive damages, but Mattice countered with the fact that Miller had already offered to settle the whole case for $75,000.

Unfortunately for DraftKings, the Miller case is not the only major consumer-driven lawsuit on their docket.

The company is also facing a massive class-action suit, which definitely qualifies for Federal court, related to last fall’s insider trading scandal. According to Legal Sports Report, that case is being heard in the US District Court in Massachusetts. DraftKings, several banks and money processors are named as co-defendants in this case.

The consequences from a loss in either one of these cases could prove fatal to the US-facing daily fantasy sports industry.


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