Daily fantasy sport and eSport operators FanDuel and DraftKings are taking New York’s Attorney General to court in an attempt to get his recent verdict that they’re running unlicensed gambling operations – and thus, illegal in the state – thrown out.
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Draftkings and Fanduel’s decision to take an aggressive stance towards the city of NY isn’t altogether surprising – if the cease-and-desist holds, then they have no recourse to continue operating in the state. He said the companies were offering contests of chance – illegal gambling under state law – and he accused the companies of misleading customers about their chances of winning in a barrage of advertisements. Schneiderman’s office says it will now “take action to enforce state law”. The distinction is important because if fantasy sports is “gambling” that opens the industry up for strict oversight by state and federal regulators.
The Daily Fantasy Sports industry has been all over the media in recent weeks and months, and there are a few huge, vested interests at stake. “And it is clear that DraftKings and FanDuel are leaders of a massive, multibillion-dollar scheme meant to evade the law and fleece sports fans across the country”.
Earlier this week, Schneiderman ordered both sites to stop accepting what he calls illegal bets.
DraftKings and FanDuel filed petitions arguing that illegal interference with their business operations would cause irreparable harm.
The Attorney General Eric Schneiderman said after the incident he would launch an inquiry into DraftKings and FanDuel the two frontrunners in the Daily Fantasy Sports betting industry. But in states like MA and NY that have legalized casinos, with their drawbacks, it is hard to make a fair case that fantasy sports sites should be banned.
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. The report alleged that the employee had access to inside information that could have been used to his advantage, but DraftKings said the information was only available after player lineups were locked.
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And in NY, one thing is certain, a lot of people are playing on the sites.
