DraftKings, FanDuel Seek to Toss Families’ Bid to Recover Losses

DraftKings Inc. and FanDuel Inc. asked the District of Massachusetts to dismiss claims by family members of fantasy sports players, arguing the companies didn’t win any of the money allegedly gambled and lost.

The claims can’t go forward under the loss recovery acts of five states because the laws only allow actions against the winners, the companies said. Fantasy sports operators like FanDuel and DraftKings are neutral contest organizers, not gambling winners, they said.

The family members also haven’t specifically identified the particular losses they seek to recover, as required by the state laws, DraftKings and FanDuel said in a ...