Racetrack and online betting operator Stronach Group claims California laws have been breached
The fantasy horseracing operator DerbyWars.com is being sued in the US District Court for Central California by racetrack owner and operator of the Xpressbet online wagering site, Stronach Group.
Stronach claims that DerbyWars owner, Kentucky-based Horse Racing Labs (also known as Immerse), breached the federal Interstate Horseracing Act by offering wagering activity without a California license.
The racetrack owner also accuses Horse Racing Labs of intentional interference with prospective economic advantage and racketeering.
Stronach's legal representatives have demanded a jury trial and are seeking unspecified damages plus court costs, according to local media reports. The filing alleges that DerbyWars' contests are a form of parlay wagering, as players rely on a collection of individual horses winning their respective races.
The suit argues that the exemptions enshrined in the Unlawful Internet Gaming Enforcement Act do not apply to contests involving the performance of single teams or athletes, or any combination thereof, and that in any case the UIGEA specifies that none of its provisions supercede previous federal or state gaming laws such as the Interstate Horseracing Act.
Launched in 2011, DerbyWars operates several online sites with a business format analogous to daily fantasy sports. The sites are not offered in six US states that have specifically banned daily fantasy sports.
The filing lists Stronach plaintiffs as the Los Angeles Turf Club, Pacific Racing Association, Gulfstream Park Racing Association, Oregon Racing, Maryland Jockey Club of Baltimore City and the Laurel Racing Association.
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