• Industry
    • Opinion
    • Features
      • iGaming Data
      • Sports Betting Data
    • Finance
    • Online Casinos
    • Podcast

      News

      DraftKings And Fanatics Settle Legal Dispute Over Executive Defection

      The settlement allows Michael Hermalyn to continue working as VIP president for Fanatics

      By Erik Gibbs

      Last updated: December 31, 2024

      1 min

      legal settlement

      A high-profile legal battle between DraftKings and Fanatics Sportsbook is coming to a close. Just before Christmas, they reached a settlement in their dispute over executive Michael Hermalyn’s transition from DraftKings to Fanatics.

      Reuters reported that the settlement, announced on Dec. 22 and finalized in a filing with the U.S. District Court for the District of Massachusetts, effectively ends the litigation between the parties. The court dismissed the case with prejudice.

      The conflict began earlier this year when Hermalyn, a former senior executive at DraftKings, accepted a position at Fanatics Sportsbook. DraftKings accused Hermalyn of breaching his employment agreement and potentially sharing confidential business strategies and trade secrets with his new employer.

      Fanatics, an emerging player in the sports betting industry, has been aggressively expanding its footprint, and hiring experienced executives from established operators like DraftKings fits with that strategy.

      The lawsuit alleged that Hermalyn’s insider knowledge of DraftKings’ operations and growth plans posed a direct competitive threat. He was hired by Fanatics to help the sportsbook build out its VIP player base, and DraftKings was concerned that Hermalyn could use privileged information to poach customers.

      DraftKings sought an injunction to restrict Hermalyn’s role at Fanatics, arguing that his move violated non-compete clauses and confidentiality agreements. The court initially ruled in DraftKings’ favor, issuing a preliminary injunction that required Hermalyn to step back from certain strategic and operational responsibilities at Fanatics.

      This order limited Hermalyn to a lesser role while the case progressed. With the case now resolved, Hermalyn is expected to assume his responsibilities at Fanatics, albeit within the constraints of the settlement agreement and the prior court orders.

      Closing the book

      The court documents revealed that DraftKings and Fanatics had been engaged in extensive negotiations before reaching the settlement. Both parties faced potential risks in prolonged litigation, including reputational damage and operational disruptions.

      VIP head Michael Hermalyn will have to honor his DraftKings noncompete and is restricted from working for Fanatics until February 2025.https://t.co/4BqsOxkZHe

      — Casino Reports (@casino_reports) September 27, 2024

      By settling, they avoided the uncertainties of a trial and preserved resources that might otherwise have been consumed by a protracted legal battle.

      While the specific details of the settlement remain sealed, the agreement was contingent on the court maintaining exclusive jurisdiction over the settlement for the next four years to address any disputes or enforcement issues arising from the agreement.

      The settlement led to a joint motion by all parties to dismiss the case, which was approved by the court on Dec. 23. Each party agreed to bear its own legal costs and attorney fees.

      For Hermalyn, the court-mandated restrictions during his early tenure at Fanatics reflect the judiciary’s willingness to enforce employment agreements to prevent potential misuse of trade secrets. However, the settlement suggests that all parties found a mutually acceptable resolution that allows Hermalyn to continue working with Fanatics while addressing DraftKings’ concerns.

      Get Weekly Email Updates

      Covering all aspects of regulated U.S. online casinos, iGaming, sweepstakes, and more

      Related Posts

      New York sweeps

      New York’s Minimum Gambling Age Up For Discussion Alongside Renewed iGaming Effort

      NYC Mayor Bally's Bronx

      NYC Mayor Helps Move Forward Bally’s Bronx Casino Proposal

      money stock down

      Study: Sports Betting Legalization Leads To Fund Managers Making Risky Financial Choices

      Bill To Make Video Lottery Terminals Legal In Missouri Gas Stations And Bars Moves To Senate

      Recommended Read

      News

      Legal War Between DraftKings And Fanatics Over Former VIP Boss Nearing Settlement

      There’s More…

      News

      MLB Players Sue DraftKings, FanDuel, Others Over Unauthorized Use Of Likenesses

      September 17, 2024

      Erik Gibbs

      maryland capitol

      News

      Legislative Round-Up: Bans ‘Swept’ Away And The Sports Betting Roller Coaster

      April 9, 2025

      Chris Altruda

      borgata atlantic city

      News

      Borgata Hit With $75,000 Punishment By NJ Regulators For Overstating Promo Credits

      September 9, 2024

      John Brennan

      senate floor

      News

      Legislative Round-Up: Sweeps Sagas Continue, Sports Betting Outside The Lower 48

      March 27, 2025

      Chris Altruda

      Get Weekly Email Updates

      Covering all aspects of regulated U.S. online casinos, iGaming, sweepstakes, and more

      • About
      • Contact
      • Privacy
      • Terms
      • Disclosure
      • Responsible Gaming

      © 2025 Casino Reports. Web Design by Fhoke.