FanDuel: Operations will continue amid talks with NY lawman

Following the dramatic announcement from NY Attorney General Eric Schneiderman declaring daily fantasy sports illegal according to his state’s laws, questions continue to surround the stance and eventual action from MA.

Echoing his letter, Schneiderman said Wednesday that his office could pursue litigation if the companies don’t stop accepting play from NY. It says there’s been an increased overall consumption of USA sports in a “virtuous circle” on TV, Internet, print and social media and that DFS has successfully managed to thrust itself into that dynamic. Schneiderman’s cease-and-desist orders so far apply only to the taking of wagers from NY residents.

DraftKings and FanDuel may have an overriding priority in ny that could cause them to delay compliance with the request. Attorney General Eric Schneiderman says the sites amount to illegal gambling, and wants to prevent it from happening.

As The News’ editorial details, the state bans staking “something of value upon the outcome of a contest of chance or a future contingent event” outside of the bettor’s direct control, even if skill is also a factor.

“This is a politician telling hundreds of thousands of New Yorkers they are not allowed to play a game they love”, FanDuel said in a statement. The company launched a petition on Twitter Tuesday.

Bank of America and American Express said they are continuing to allow customers to use their debit or credit cards to play fantasy sports while the companies monitor the situation.

“It’s considered a game of skill and not gambling”, National Football League spokesman Brian McCarthy said in September.

One-point-one million people use the sites in NY.

On a Tuesday morning in October, Cory Silver, founder of the startup fantasy sports platform FansPlay, found a sternly-worded memo from PayPal in his email inbox.

Eccles said he would welcome “sensible regulation” in the form of consumer protections. “I’d like to get beyond that and figure out for policymakers and lawmakers, here should be the rules of the road”. Another option would be to bring criminal charges, though the attorney general hasn’t threatened that type of action.

A Pinellas County man has filed suit against two popular fantasy sports websites accusing them of violating Florida gambling law.

The industry’s most rapid growth has come via daily and weekly fantasy games.

Under the NFL’s own policy, networks broadcasting its games can not run advertisements for “any product or service relating in any way to gambling or sports betting”. Both companies have said they intend to fight any shutdown demand in court. “This is because top prizes are often won by individuals with a player who appears on fewer rosters but comes through with a big game”.

Eccles conceded that the widespread advertising campaign “definitely” put the company on everyone’s radar.

The National Basketball Association and Major League Baseball prohibit players from participating in daily fantasy sports.

“Is there material element of chance?” “If there is material evidence of luck it’s still illegal”. The two companies launched petitions to try to fight Schneiderman’s orders, urging their users to contact the attorney general and voice their opinion.

Schneiderman’s cease and desist letters state the companies have five days to respond and offer their arguments against the state ruling. “In the gambling world, that never works out well”. Federal law criminalizes gambling businesses that operate in violation of state law, with penalties that can include prison time and fines.

Daily fantasy sports has exploded in popularity in recent years, with games growing more quickly than more-established season-long fantasy sports leagues.

“He is somehow drawing a line in time”, Ordine said.

Both Ordine and Dunbar agree that FanDuel will have to stand its ground to survive.

For both sites to grow as fast as they have and not have any plan in place for oversight seems very naive. “They cannot take a passive attitude on this and they can’t waive a white flag like they did in Nevada”.