Previous DraftKings executive Michael Hermalyn argued that DraftKings has used “unnecessary character execution” amid a plot to “instill fear” in people “looking to leap ship” and that the federal judge on Thursday should reject DraftKings ‘ request for a preliminary injunction that would prevent Hermalyn from working for rival Fans.
Hermalyn was the agency’s Los Angeles office’s leader before moving to Fans two months ago. He describes the position as “unique, career-advancing prospect” and reports straight to Fanatics CEO Michael Rubin to the company.
Hermaly n’s brief in opposition to DraftKings ‘ motion rebukes his former employer’s portrayal of Hermalyn as misappropriating sensitive materials. The issue centers primarily on whether Massachusetts or California legislation applies to a noncompete agreement Hermalyn signed with DraftKings, for whom he worked from 2020 to 2024. If California rules applies, the noncompete may be illegal, as the condition restrictions noncompetes, if Massachusetts rules applies, there are fighting explanations by DraftKings and Hermalyn as to whether the noncompete ought to be enforced.

Hermalyn raises some claims. He claims that DraftKings is attempting to set himself up as a model for other Lotto employees, preventing them from applying for jobs at Fanatics. Since the organization announced an online casino start in 2021, Hermalyn claims 186 Lotto people have applied to work for Fans.
Hermalyn even asserts that while DraftKings says he “downloaded” documents from a non- DraftKings machine, he merely viewed documents, which he argues he was authorized to observe, on his individual telephone. Hermalyn further insists he followed DraftKings protocol by returning “all” of his company- issued devices when he switched jobs and “even surrendered” his “personal phone, personal email, and other accounts that might have had any DK information”.
To obtain a preliminary injunction, DraftKings must establish it would suffer irreparable harm ( harm that money damages ca n’t later remedy ), but Hermalyn contends DraftKings ca n’t show it has suffered “any” harm.
He points out that DraftKings “does not claim to have lost a single customer” or any other employees to Fanatics since he switched jobs. Hermalyn also refutes claims that sports betting customers were allegedly swindled, calling them “mak]ing ] no sense,” because customer relationships with sports betting companies are not exclusive. Since a DraftKings customer could also be a customer of Fanatics, FanDuel, or any other sports betting company, he claims there is no way to “move a book of business” from DraftKings to Fanatics. Hermalyn cites Fanatics data that shows its typical gambler has 2.9 active sports betting applications.
Orin Snyder, an attorney representing DraftKings, said via email:” The evidence against Mr. Hermalyn is open- and- shut. He lied about it all, destroyed evidence to conceal his tracks, and stole valuable trade secrets. We look forward to the upcoming hearing”.

U.S. District Judge Julia Kobick will decide whether to grant or reject a preliminary injunction based on Hermalyn and DraftKings ‘ starkly different legal and factual assessments. Hermalyn and Fanatics are plaintiffs in a California case while Fanatics is a defendant in a Massachusetts case. They have sued DraftKings, arguing the noncompete in unenforceable.
These lawsuits are the most recent public conflict between the two billion-dollar sports companies, which compete in NFTs and sports betting. DraftKings submitted a non-binding offer that it claimed was superior to Fanatics ‘ proposal to acquire Points Bet’s U.S. business last year, which was postponed. At the time, Rubin claimed the move was a “desperate” attempt to block the deal. Fanatics ended up making the acquisition for 50 % more than its original offer because DraftKings never made a binding offer.
Fanatics, the largest online retailer of licensed sports gear, has grown in recent years to include new industries like trading cards and sports gambling.
On the betting side, it hired a number of well-known executives from different sectors, including Ted Moss, a former Sky Bet managing director, and former FanDuel CEO Matt King, who co-signed with Fanatics Betting &amp, Gaming. Its growth has been gradual—the Fanatics/Points Bet apps ended February with “low- double- digit” market share for new downloads, according to data from JMP Securities.
( The eighth paragraph of this article has been updated with a statement from DraftKings attorney Orin Snyder. )