The reaction comes a day after NY Attorney General Eric Schneiderman sent FanDuel and rival DraftKings cease-and-desist letters.
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Eccles said his company has about 600,000 players in NY, which makes up about 10 percent of its customer base.
“There are a few states that have looked at regulating this but unfortunately NY state has not looked at regulating it yet and I know we’ll be going back to Albany and this is something we’ll be talking about”, said Kearns.
Shucks, we’re just people connecting people, and taking a cut for making it possible.
Schneiderman told the companies he plans to go after them for violating NY gambling laws.
“This is something that does not target bettors”, Schneiderman said.
Schneiderman, in his announcement, said daily fantasy sports cause “the same kinds of social and economic harms as other forms of illegal gambling”.
“Because of the daily nature of daily fantasy sports, I think there are sufficient questions to allow the attorney general to reach the conclusion that it’s purely a game a chance”, said McLaughlin, now a partner with the Hodgson Russ law firm.
Zwillinger, a former U.S. Justice Department official and touted as a “foremost expert on internet security law”, called Schneiderman’s legal analysis was flawed. It said the company would “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”. “Please acknowledge the receipt of this notice and confirm you are updating all location controls to block players from this jurisdiction”. These people requested anonymity because they were not authorized to speak publicly about the companies’ business relations.
Vantiv did not return requests for comment. “And all of them have invested in what may be considered an illegal gambling business and that opens up all these entities up for the possibility for criminal prosecution under federal law”.
The tone Wednesday among financial companies was of uncertainty.
“Players can certainly still bet on FanDuel”, added Nigel Eccles, the company’s chief executive officer. “We will have to wait and see how this plays out”. “It’s a complicated jurisdictional analysis”. But recent scandals and government investigations into possible “insider trading” and whether daily fantasy play is driven by “luck” has leagues in an uncomfortable position – given dark gambling chapters in their histories.
But no fantasy sports company has been prosecuted under Florida law. FanDuel employees could enter DraftKings contests and DraftKing employees could enter FanDuel contests with enhanced statistics and data, giving the employees a greater advantage to win. But both have made it clear they intend to fight to keep operating in ny.
In the games, participants pay entry fees and pick players to fill rosters in order to win money competing in contests against other sports buffs.
This year it is expected to give away about $2bn (£1.3bn) in prize money.
A handful of other states have previously said fantasy sports amounts to gambling and isn’t allowed.
The companies’ legal troubles stem from an incident in October, when a DraftKings employee mistakenly posted critical player information online and then won $350,000 playing on FanDuel later that week. Both are working to fight the order.
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FanDuel may also make a legal challenge in NY, according to Reuters.
