August 18, 2026
Jeffrey Eilender recently spoke to Bloomberg Law about the legal implications of DraftKings’ expansion into prediction markets and the growing debate over whether these products constitute gambling or financial tools.
In the article, “DraftKings Suits Will Help Compare Hedging Tools With Gambling,” Bloomberg Law examines a trio of lawsuits brought against DraftKings by users who allege that the company’s prediction market offerings amount to unlicensed sports betting in states where sports gambling is illegal.
Jeffrey notes that DraftKings’ operation of both traditional sports betting and prediction market products could create an appearance that the company is attempting to bypass state gambling laws, but that the optics of the arrangement do not necessarily affect the underlying legal merits of the cases.
“It sort of creates this image that the defendant really is trying to circumvent the law. But this is an optics thing,” Jeffrey says. “In terms of the merits, I don’t think it makes the defense harder or makes it easier for the plaintiff.”
The litigation could provide courts with an opportunity to directly compare traditional sports betting with prediction market products offered by the same company, potentially providing greater clarity around the legal distinction between gambling and financial trading.
Read the full article in PDF here or in Bloomberg Law (Subscription may be required).
Jeffrey M. Eilender is the co-managing partner of Schlam Stone & Dolan LLP and co-chair of the civil litigation group. He regularly contributes to the firm’s New York Commercial Division Blog and has been recognized on the New York Metro Super Lawyers® list in Business Litigation, Civil Litigation, and General Litigation since 2010.