Gridiron Fantasy Sports hit with lawsuit; target of Missouri Attorney General

Submitted by Randy Burgess on Sat, 2011-11-12 16:00

Gridiron Fantasy Sports, appears to have collapsed — owing hundreds of thousands of dollars to past winners, according to one lawsuit, threats of others and months of complaints posted online.

In a suit filed Nov. 4 in federal court in St. Louis, Cary Katz, who lives in Nevada, demands payment of $95,000, from the World Championship. He claims in court documents that it is really a pyramid scheme, using money from new entry fees to pay off past winners.

The Missouri attorney general's office said it has received 32 complaints from players who claim they're owed roughly $144,000. Spokeswoman Nanci Gonder said the office is "aggressively investigating."

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Our Take:

This issue with Gridiron has been brewing for a while and so this is not too much of a shock if you've been tracking the story for while. Unfortunately, this event is just like Paul Charchian stated: a black eye on the industry. If the fantasy sports market wants to stay off the radar of the anti-gambling folks, this business collapse is not a good way to do it. Justified or not, fraud gets the lawmakers riled up.

Source:

Multi-million-dollar fantasy sports league appears to collapse
stltoday.com
http://bit.ly/rHLdV5