Sports bettors are used to seeing some large battles on the sphere, court docket, or rink, however now two main sportsbook operators are squaring off within the courtroom. DraftKings not too long ago sued a former govt now working for Fanatics, alleging the previous worker had a “secret plan” to steal firm data.
DraftKings alleges Michael Hermalyn, who beforehand served as president in control of VIP bettors, took details about a number of the firm’s greatest bettors to his new place with the Fanatics sportsbook.
“Hermalyn knows DraftKings’ playbook on how to engage and retain VIP clients,” the lawsuit notes. “On information and belief, Hermalyn, acting in concert with Fanatics, timed his departure and theft of confidential information to coincide with the critical days leading up to the Super Bowl to further a scheme to irreparably interfere with DraftKings’ customer and business relationships by pursuing those relationships at Fanatics using the confidential information and goodwill that he obtained at DraftKings.”
The swimsuit comes after Hermalyn additionally filed his personal lawsuit difficult the non-compete clause in his contract with DraftKings. Fanatics has denied the allegations outlined in DraftKings’ lawsuit.
“This is just sour grapes,” the corporate mentioned in an announcement. “DraftKings is understandably upset that one of its employees left for the greener pastures at Fanatics. The fact that they are trying to drum up ridiculous allegations on one of their well-respected executives in an attempt to ruin his reputation sheds some light on why employees may be choosing to leave that organization.”
Other Allegations
In addition to the allegations about stealing firm data, a DraftKings investigation additionally revealed office misconduct towards feminine workers by Hermalyn. The operator reported that the previous worker “engaged in unwelcome physical contact with a female employee without her consent” and “made inappropriate comments regarding his female colleague’s physical appearance.”
DraftKings’ allegations not solely singled out Hermalyn, but additionally Fanatics administration. The swimsuit alleges that Hermalyn met with Fanatics CEO Michael Rubin and different executives ultimately yr’s Super Bowl, after which allegedly “improperly” inspired subordinates to additionally meet with Fanatics workers.
DraftKings is in search of a short lived restraining order barring Hermalyn from utilizing any of the alleged stolen data.
Fanatics has confronted an analogous lawsuit involving entry into the sports activities playing cards enterprise. Panini America has sued, arguing that the corporate raided its workers and interfered with employment contracts that have been in place.
Fanatics makes a speciality of sports activities crew gear and entered the betting trade after buying the belongings of PointsBet’s U.S. operations in 2023 for $150 million.
