A New York attorney general declared Tuesday that FanDuel and DraftKings must stop receiving “wagers” from New York residents.
Attorney General Eric Schneiderman declared that daily fantasy sports constitutes illegal gambling in his state. Because of this, both DraftKings and FanDuel were sent cease-and-desist notices.
“Our investigation has found that, unlike traditional fantasy sports, daily fantasy sports companies are engaged in illegal gambling under New York law, causing the same kinds of social and economic harms as other forms of illegal gambling and misleading New York consumers. Daily fantasy sports is neither victimless nor harmless, and it is clear that DraftKings and FanDuel are the leaders of a massive, multi-billion-dollar scheme intended to evade the law and fleece sports fans across the country. Today we have sent a clear message: not in New York and not on my watch,” said Schneiderman.
Both sites have issued statements in response to today’s ruling:
“Fantasy sports is a game of skill and legal under New York State law. This is a politician telling hundreds of thousands of New Yorkers they are not allowed to play a game they love and share with friends, family, coworkers and players across the country. The game has been played — legally — in New York for years and years, but after the Attorney General realized he could now get himself some press coverage, he decided a game that has been around for a long, long time is suddenly now not legal. We have operated openly and lawfully in New York for several years. The only thing that changed today is the Attorney General’s mind.”- FanDuel
“We are very disappointed that New York Attorney General Eric Schneiderman took such hasty action today, particularly since he did not take any time to understand our business or why daily fantasy sports are clearly a game of skill. We strongly disagree with the reasoning in his opinion and will examine and vigorously pursue all legal options available to ensure our over half a million customers in New York State can continue to play the fantasy sports games they love.”-DraftKings
“Our review concludes that DraftKings’/FanDuel’s operations constitute illegal gambling under New York law,” said Schneiderman in a letter. Both companies have been given five days to respond to the cease and desist orders and explain to the Schneiderman why he shouldn’t pursue it.
Today will set the foundation for other states to ban the site. Do you think this is fair?
Source: ESPN
