Ex-DraftKings executive loses appeal of Fanatics work restrictions

Sunday, September 29, 2024 1:21 PM
Photo:  Shutterstock
  • Nate Raymond, Reuters

A federal appeals court on Thursday rejected a former DraftKings executive’s bid to overturn an injunction that severely restricts the type of work he can do now that he has joined its sports betting rival Fanatics.

The Boston-based 1st U.S. Circuit Court of Appeals rejected Michael Hermalyn’s bid to have California law applied to the dispute over his non-compete agreement with DraftKings, which would have rendered it unenforceable, and instead held Massachusetts law governed.

“Massachusetts and California aren’t exactly on the same page when it comes to non-compete agreements,” Senior U.S. Circuit Judge O. Rogeriee Thompson acknowledged in her opinion for the three-judge panel.