I heard a lengthy discussion of this with a legal expert on a radio show (I hadn't heard about it until then). If the people talking about the case had their facts straight, Fidelity has a couple of big things issues going against them:
1. Whether we think it's gambling or not, as was previously mentioned here, the Federal court has been very careful to differentiate fantasy sports from gambling. If they were just looking to fire these guys they probably could have drummed up some other reasons, but their termination papers specifically say it's for gambling violations related to fantasy football. Unless their policy is very specifically worded when it comes to fantasy sports, it's going to be pretty easy to make a case that they misapplied this policy.
2. There was minimal money involved--I think they said it was a $20 league, so it's not really holding up to the common sense standard either.
3. Additionally, the guy that's become the face of this case apparently had zero demerits (or whatever Fidelity calls them) on his record and a ton of accolades, so it's kind of hard to argue this was a straw that broke the camels back situation, at least for him.
4. Again, if they had their facts straight, there were 10 people in the league, yet only 4 got fired. That doesn't sound like applying a zero tolerance to everyone.
I think the bottom line is someone was using the gambling policy as an excuse to fire and clearly had no idea that this would turn into a national news story. I think it's pretty bad business for Fidelity because they sound shady + currently fantasy football is extremely popular and investment banking companies are not. I'm sure they've already lost business over this. Now maybe it will turn out these 4 were spending hours a day managing fantasy teams on the clock, but until then it's making Fidelity look foolish.