Saying that her ongoing review of daily fantasy sports games uncovered “a number of significant concerns”, Attorney General Maura Healey on Thursday announced a series of proposed regulations for the burgeoning industry, including a ban on players under the age of 21.
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In spelling out her approach, Healey stated what is already obvious to many: there is no intellectually honest distinction to be drawn between daily fantasy sports and other games that have been addressed under gambling laws.
Both DraftKings and FanDuel have requested court orders to protect their business in NY state. These possibilities highlight how the process for determining the legality of DFS in NY is complex and full of variables that make it hard to predict the ultimate outcome.
A Schneiderman aide said he declined to comment on Healey’s plan. FanDuel CEO Nigel Eccles has publicly stated his unease with sports that involve an individual’s performance in a single event, as the UIGEA’s exemption of fantasy sports is based on its reliance on “accumulated statistical results of the performance of individuals … in multiple real-world sporting or other events”. The sides are due to appear in court Wednesday and expected to file legal briefs Monday. Boies, however, said he would likely fight any decision that hurts DraftKings – and he could take the appeals process as far as it goes.
FanDuel’s note, which was earlier published up by Deadspin’s Kevin Draper, was part of the evidence submitted to the NY State court as the site’s disputing the the state’s decision to ban its service in the state. FanDuel was created by a veteran of the legal online betting industry in the United Kingdom, while the CEO of DraftKings suggested that it operates in the “gambling space”, and described its revenue model as “identical to a casino”.
A preliminary injunction would prevent DraftKings and FanDuel from operating in NY.
“Instead, when they spend as much time as they do [talking about] if somebody used the word gambling, that reveals that they are trying to distract attention from what the real legal definition is here”, Boies said. “I think the attorney general has obviously changed his mind…. He’s not entitled to unilaterally change the law”. More than $420,000 of those entry fees came from registrants in Washington state, whose definition of gambling is nearly identical to that of NY. Boies also pounced on the disclaimer that a very small percentage of DFS players actually win on a regular basis. Daily Fantasy Sports allows players to set a new lineup and compete every week, even every day.
Over the past week, New York’s more committed daily fantasy sports players have probably noticed that in his quest to wipe out daily fantasy sports in the state of NY, Attorney General Eric Schneiderman may have missed a few spots. Boies said Rose’s actions would have been legal in NY.
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McKenna said he sees little difference between daily, weekly or season-long game, calling all a game of skill.
