Fantasy sport firm Fanduel told to stop taking bets in NY

FanDuel CEO Nigel Eccles made clear Wednesday that his company is gearing up for a legal fight, pledging to push back against the cease-and-desist order issued Tuesday by state Attorney General Eric Schneiderman. “This is not me drawing the line. this is holding the law steady so it isn’t unfair”. “Daily fantasy sports is a skill game and is not considered gambling”. “Like many New Yorkers, I participate in DraftKings games and I enjoy playing”. At least five smaller fantasy sports-betting sites – DailyMVP, DraftDay, DraftOps, FantasyDraft and MondoGoal – voluntarily shut down NY operations to avoid a showdown with Schneiderman. The fact that a few winners account for most the winnings is an indication of the skill involved, not of luck.

“This creates a real vulnerability for the industry”, said Daniel Wallach, a sports and gaming lawyer in Florida.

“And as a result of which, unfortunately, without enough analysis they sometimes inappropriately regulate, and in the case of NY I would say over-regulate”. FanDuel and DraftKings are more oriented for people who want to bet on how they think certain players will perform in a week.

If the industry fails to head off Schneiderman’s civil suit, it would probably seek a preliminary injunction from a NY State court declaring that daily fantasy sports don’t violate the state’s gambling laws. “It makes intuitive sense they’d be concerned”.

“I don’t think it’s a plague upon society, I think it’s fine it should be allowed. The question, though, is whether or not that’s actionable under the law and do we have in place the right kind of legal and regulatory framework to address that”.

People with knowledge of the Vantiv letter told the Globe that both DraftKings and FanDuel received the request, but said the vendor later relented and agreed to continue processing payments after talks with the companies. “New laws may be necessary”, she said.

Senior Adam Cabral had a different take on the whole fiasco. It could take the form of regulations, it could take the form of actual laws. “And before legislatures or AGs or a governor just says ‘no you can’t play here, ‘ there should be more determination of what it is”.

Lawmakers, state attorneys general and others have been giving the daily fantasy sports industry extra scrutiny following its rather loud and unprecedented advertising campaign in 2015, and following revelations that DraftKings employee Ethan Haskell won $350,000 on rival site FanDuel during week No. 3 of the National Football League season. He’ll continue to play season-long fantasy football for fun after giving FanDuel a shot.

And the latest statement from Healey’s office also reflects the change in language, using the word gambling in reference to what the consumer protection aims are.

Joseph M. Kelly, a professor of business law at the State University College at Buffalo, said the state would have to prove that chance is a material factor in daily fantasy sports, which would make it gambling.

“New York’s actions today are an unfortunate example of a state government stifling innovation, technology and entrepreneurship and acting without full and fair consideration of the interests of consumers”.

But whether or not daily fantasy sports requires strategy is at the heart of its controversy.

Furious fans cried foul Wednesday over NY Attorney General Eric Schneiderman’s crackdown on fantasy-sports betting – accusing the state’s top lawman of hypocrisy and showboating.