The NY state attorney general is delivering a major blow to the two biggest dailyfantasy sports companies. 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 NY State can continue to play the fantasy sports games they love.
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Fantasy sports companies contend their games are not gambling because they involve more skill than luck, and were exempted from prohibition in 2006.
“Like many New Yorkers, I participate in DraftKings games and I enjoy playing”, he said. “I see it as entertainment and look forward each week to pitting my football knowledge against other fans”.
The legislation would require all fantasy sports game operators to register with the Florida Department of Agriculture and Consumer Services and impose restrictions on who can play the games.
He also accuses the companies of running a scheme where the vast majority of winnings go to “a small subset of experienced, highly sophisticated players” that make up only 1 percent of all participants.
“The overwhelming majority of the bettors are lured in with these ads making it look like an easy way to make money”, he said.
It was less than one month ago when Preet Bharara, US Attorney for the Southern District revealed it was him that is to be credited with shutting down the online poker industry back in 2011, and with the concurrent investigations of whether or not daily fantasy sports was in violation of federal law. States including New Jersey, Pennsylvania, MA and Georgia have considered enacting their own rules. The popularity of the games has exploded over the past 15 years.
In the games, fans pay to compete for daily cash prizes in simulated athletic contests.
Buy-in fees on the daily sites can range anywhere from 25 cents to $5,000.
Media companies – Time Warner and Fox Sports – have equity interests in daily fantasy operations.
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In contrast, he said DraftKings is “designed for instant gratification, stressing easy game play and no long-term strategy”.
