The attorney general’s office also contacted DraftKings’ business partners, threatening them with legal action unless they “immediately ceased performing services for DraftKings in NY”.
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A FanDuel spokesperson said it has a “legal business that millions and millions of people love and we are entitled to due process and look forward to being heard in court”.
DraftKings and FanDuel aren’t going to get sacked in NY state without putting up a fight. Online sports gambling sites are illegal in NY.
Specifically, section 225 of NY Penal Law states that “a person engages in gambling when he stakes or risks something of value upon the outcome of a contest of chance or a future contingent event not under his control or influence”.
Both companies have a lot at stake in NY: they have offices in the area (FanDuel is headquartered there) and maintain lucrative partnerships with area teams.
Fantasy sports betting websites FanDuel and DraftKings are fighting back against NY Attorney General Eric Schneiderman.
In a statement, DraftKings responded to Schneiderman’s order saying, “fantasy sports is a game of skill and legal under NY state law”.
New York’s Constitution prohibits gambling.
He came to the protest after reading the cease and desist letters from the attorney general’s office to the companies.
“If you’re like us and you believe that daily fantasy sports is fun, entertaining, and a game of skill … tell your legislators directly that you would oppose any such measure”, the DraftKings email read.
“Regulation is one thing, but this isn’t regulation – just one guy making a decision”, said Green, who spends a few hundred dollars a week on the games. Traditional, season-long fantasy sports are not implicated by the AG’s action. Normally, the data is not released until after certain games are played.
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According to the Globe, DraftKings and FanDuel, by far the largest players in the industry, have raised more than $1 billion in investor funding between them since 2012. A report from Eilers Research indicates that NY has the highest participation in daily fantasy in any state. They’re accusing him in lawsuits of abusing his powers in ordering that they shut down in NY and are asking a judge to let them keep operating.
