Citigroup blocks fantasy sports transactions in New York

In this September 9, 2015, photo, an employee in the software development department of DraftKings, a daily fantasy sports company, walks past screens displaying the company’s online system stats in Boston.

In the USA however, several states, including Texas, have criticized the site saying that since the site is gambling it needs to be licensed.

The launch was partially hinted by announcements earlier this week that DraftKings had agreed partnerships with Barclays Premier League football clubs Arsenal and Liverpool, while there were also reports that DraftKings had partnered with Watford.

Daily fantasy sports industry in the USA received a jolt Friday when Citigroup reportedly said it would begin blocking debit and credit card payments from NY to two of the largest websites in the business – FanDuel and DraftKings.

New York Attorney General Eric Schneiderman sent cease and desist letters to the CEOs of FanDuel and DraftKings previous year after deciding they were breaking the rules of the state.

The ban will stand until a court in NY makes a final decision on the legality of the daily fantasy sports, the bank said.

DraftKings meanwhile has argued that their games are based on skill, not chance, and insisted that their operations are not illegal because they do not accept wagers, and because their success does not rely on any particular result. An injunction to shut down the sites in NY was granted in December but was quickly reversed upon appeal – but the matter is still wending its way through the court system.