Daily fantasy sports companies believe they are legal under a 2006 federal law that cracked down on online gambling but exempted paid daily fantasy sports under certain conditions, including that they reflect the skill of the participants as opposed to pure luck or chance.
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Daily fantasy gaming has finally gotten too big for its own good, and with that New York’s Attorney General, Eric Schneiderman, rightly labeled it what it is – gambling.
In a related action, the companies sued the attorney general Friday and asked the court to summarily declare that fantasy sports don’t constitute “gambling” or “bookmaking” as defined by state law.
Another hearing in Manhattan Supreme Court was set for November 25.
At least six states-Arizona, Iowa, Montana, Louisiana, Nevada, and Washington-generally ban fantasy sports wagering or have ruled to restrict it.
In the past year, most of us could not watch any of our favorite sports or ESPN without being inundated by ads asking people to join the fun.
NY is the most recent state to weigh in on with a view on the legality of fantasy sports.
Justice Mendez agreed Monday with the attorney general that his cease-and-desist letters still allow the companies to continue operating, meaning any restraining order against the attorney general would be premature.
Schneiderman’s office did not immediately comment on the motion.
Cincinnati-based Vantiv is a key player in fantasy sports, noting on its website that it can increase “operational efficiency by reducing fraud, managing chargebacks and providing customer conversion guidance”.
The sites have come under increased scrutiny since it was revealed last month that a midlevel DraftKings employee playing fantasy football beat more than 200,000 other players, winning $350,000 on rival FanDuel.
Daily fantasy sports, a turbocharged version of the season-long game, have developed over the past decade.
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.
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FanDuel says it will further chop its Sunday Million guarantee by $500k to $2.5m for Week 11, while cutting the first prize payday from $500k to $300k.
