Lawyers for DraftKings and FanDuel, the two biggest fantasy sports companies in the nation, had urged Supreme Court Justice Manuel Mendez to deny the injunction, saying it would “destroy” their businesses. Daily fantasy sports is a game of skill, not an illegal gambling operation as the attorney general has alleged, they said.
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“Chance pervades fantasy sports”, McGee said.
She said that while putting together a competitive roster may require skill, ultimately the contests involve betting on how actual professional players preform in real life, in the future, subject to factors outside their control such as rain delays, blown calls and injuries.
These corporate giants simultaneously claim that anyone can win-that’s what attracts players, after all-but also prove that they’re skill-based games, not gambling enterprises.
Lawyers for DraftKings and FanDuel went head-to-head Wednesday with prosecutors from the state Attorney General’s office over whether the popular online sports leagues are actually gambling dens in disguise. “This is not a jury case where you’re trying to play on the emotions of the jury or trying to confuse the jury with statements that aren’t related to the legal issue”. The ruling after Wednesday’s hearing likely will indicate which way the judge is leaning and would stay in place until a trial, unless overturned on appeal.
Schneiderman filed suit against DraftKings and FanDuel earlier this month, asserting that the companies violate the state’s law against gambling on sports.
That question may be moot soon, as Levine has requested that California Attorney General Kamala Harris consider taking action similar to New York’s – at least until the fantasy sports games can be regulated. Schneiderman maintains that NY law bans taking bets as a business, with exceptions for horse racing, casinos, state lotteries and certain other settings, but not daily fantasy sports sites. Despite the drops, FanDuel’s $3m Sunday Million exceeded its guarantee by $400k while DraftKings took in $700k more than its $5m Millionaire Maker had guaranteed. DFS participants pay an entry fee to compete for fixed prizes.
“I still don’t understand why is it that traditional fantasy sports would be allowed while daily fantasy sports wouldn’t”, he said to McGee.
New York’s attorney general has sent letters to daily fantasy sports websites DraftKings and FanDuel demanding they turn over details of any investigations into their employees on Tuesday, October 6, 2015. Those same percentages hold throughout its six year history, during which time 293 New Yorkers have lost more than $10,000, and 30 have lost more than $50,000.
He also says that these are games of skill “under any reasonable definition”.
Modern fantasy sports activities began in 1980 and surged in reputation on-line.
That complexity gives advantage to the people who have the greatest understanding of statistical algorithms, meaning that a very small percentage of daily fantasy players take the vast majority of the winnings.
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The committees have invited Schneiderman to testify, along with the state comptroller, New York State Gaming Commission, New York Council on Problem Gambling, and New York Gaming Association.
