While they are not targeting them, they are doing a poor job in qualifying them. The NY AG opinion has a brief section attempting to differentiate, but is largely a circular conclusion. The Illinois AG Opinion’s reasoning - that the exemption for “bona fide” skill competitions doesn’t apply to selecting athletes in…

The legal definition of fantasy in UIGEA. At this point you have to include multiple players in multiple athletic competitions, which precludes awarding something by a single individual in a single game.

The advertising campaigns by FD/DK. The ads forced awareness on people who had, to this point, been ignoring the legality of DFS. They forced their own legal problems by being overly aggressive with marketing.