Daily Fantasy Sports Sites FanDuel, DraftKings Asked to Stop Accepting Wagers

SEATTLE — The NY attorney generals decision that daily fantasy sports betting sites FanDuel and DraftKings are illegal gambling operations in his state is a major blow to the companies, but the multibillion-dollar industry could have more legal headaches yet to come.

Echoing his letter, Schneiderman said Wednesday that his office could pursue litigation if the companies don’t stop accepting play from NY.

The websites allow users to create online fantasy teams to compete and win money in contests against other users.

The FBI and U.S. Department of Justice opened federal investigations last month after it was revealed that a DraftKings employee had divulged classified customer information while winning $350,000 from a FanDuel fantasy National Football League contest, global Business Times previously reported. However, both companies say they are still taking entries in NY.

“We’ve got to be one step ahead of everything because we will be regulated as an industry”, Silver says. “If I make a bet on American Pharaoh with a bookmaker, why is that gambling while betting on a seasonal fantasy sports might be considered skill?” “I think if people want to gamble at their own risk and own peril then I don’t think the government should control it”.

“The problem that FanDuel and DraftKings will have when they fight this in court – and I assume they will – the hurdle they have to overcome is a judge will look for an interpretation or opinion of the attorney general as to the laws of the state”, McLaughlin said.

Schneiderman nailed this issue like a chip-shot field goal, and other attorneys general are expected to follow his lead.

Both companies insisted that their games are legal and based on skill and said they were reviewing their legal options.

“Fantasy sports is a game of skill and legal under NY State law”, said FanDuel in a statement. Meant to evade the law and fleece sports fans. You now, we can debate gambling or not gambling. And in NY you can buy a variety of lottery tickets with prizes from ranging from $1 to $100 million because in 1966 voters and legislators changed the Constitution to allow it, as long as proceeds helped fund education. That’s where daily fantasy sports differs.

FanDuel is in talks with at least one payment processor over whether to handle funds from players in NY, according to a person familiar with the matter.

In response to the latest development, both DraftKings and FanDuel announced that they would not abide by the new order.

It doesn’t appear that either FanDuel or DraftKings will cave so easily this time. “While we disagree with this decision, we have determined to respect the order of the attorney general”.

Amid a push by a few lawakers in Tallahassee to pave the way for fantasy sports sites to operate freely in Florida, litigation elsewhere in the state is challenging the legality of the popular pasttime. That move was anticipated given opposition to fantasy sports by that state’s formidable casino industry.

The line blurred significantly Tuesday evening for leagues with a stake in the embattled daily fantasy sports industry.

FanDuel and DraftKings contend their daily contests are legal because they are based on skill, not chance, but Schneiderman concluded the opposite. We hope this trend continues along with due consideration for over 56 million sports fans across the country who enjoy playing fantasy sports.