FanDuel, DraftKings denied temporary restraining order in NY DFS decision

Read on and judge for yourself…

A screenshot of FanDuel.com, a DFS titan which has halted operations in NY. In fact, several major sports leagues, the National Basketball Association and MLB in particular, have invested stakes in the daily fantasy sports sites, but league representatives argue that the activity should still be regulated to “protect integrity”.

“You can do it from an app on your phone, any time of day or night, drunk or sober”, says Schneiderman, who claims his move was partially motivated by concern about gambling addiction.

– The sites harm the community by fostering gambling addiction.

The company did not immediately comment on those revenue figures. “Problem gamblers are increasingly being seen at Gamblers Anonymous meetings and at counselors’ offices addicted to DFS”, he writes. “FanDuel recognized that this policy would be ill-received, instructing employees to minimize their public presence “so users are less likely to be suspicious or angry” and avoid becoming “among the top five players by volume” because ‘top players frequently become targets for accusations'”.

For example, Schneiderman pointed to a DraftKings presentation to prospective investors that makes comparisons to poker and sports wagering.

This has led to a slew of questions from disappointed and befuddled DFS players. “This is what it means for a wager to be contingent on a future event”.

As it is simply an injunction, FanDuel’s actions are preemptive. As such, Schneiderman suggests “a well-considered lineup picked by an experienced DFS player could easily take home a lesser prize or no prize – while a randomly assigned lineup could win the jackpot”. He says chance plays just as much of a role, if not more, than it does in games like poker and blackjack. According to the order, the games constitute illegal gambling under NY law. “As NY law has long recognized, gambling often mixes elements of chance and skill”.

DraftKings is still doing business with NY members of its site.

The industry asserts that daily fantasy betting is a game of skill, making it legal under federal and state law.

Boies also argues that Schneiderman improperly singled out DraftKings and FanDuel for his action.

Schneiderman also said in the DraftKings complaint that almost 90 percent of daily fantasy sports players lost money in 2013 and 2014, citing the company’s data.

The court filing notes that DraftKings insists it is not in the gambling business but the papers point out that it embeds keywords that led users of Internet search engines typing in the word “betting” to its website.