Sports Wagering App Successfully Enforces Contractual Ban on Class Action Claims

A leading online sports wagering/casino company represented by Faegre Drinker successfully enforced a stand-alone class action waiver in its Terms of Use, defeating at the motion to dismiss stage consumer fraud claims brought as a proposed class action by five of its users. Although the U.S. Supreme Court has made clear that class action waivers tied to arbitration requirements are enforceable, this company's online contract barred class actions without requiring patrons to arbitrate disputes. The Supreme Court's decisions have suggested “stand-alone" class action waivers should be enforceable, too, but that issue is a matter of state law, not federal law. Spurred by our motion to dismiss, a judge in the District of Colorado analyzed this issue under the laws of Colorado, Illinois, Iowa, New York and Virginia, and determined that stand-alone class action waivers are enforceable under the laws of all those states.   ​

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