The sponsor of a Pennsylvania bill to limit daily fantasy sports betting to the state’s licensed casinos says it could be bolstered by more stringent action in other states. “Federal law and 45 of the 50 US states allow skill-based gaming”.
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“It really does lure in people who are the most prone to gambling addiction problems”, he said. The games are illegal in Arizona, Iowa, Louisiana, Montana and Washington state, and their status is murky in others.
Schneiderman has sent cease-and-desist letters to the two companies, his office said in a news release issued Wednesday.
“To date, our investigation has shown that the top 1 percent of [DraftKings and FanDuel] winners receive the majority of the winnings”, Schneiderman stated.
Eccles conceded that the widespread advertising campaign “definitely” put the company on everyone’s radar. Today we have sent a clear message: “not in NY and not on my watch”. “Yes. [The ad campaign] definitely put us on everyone’s radar”. Many have made significant investments in these facilities – Barclays Center and Madison Square Garden have large concourse level Fantasy Sports Lounges that generate a ton of traffic and revenue. What if a player rolls his ankle?
FanDuel attorney Zwillinger told reporters that they looked forward to meeting with the attorney general and were prepared to state their case.
But Schneiderman’s investigators determined that DraftKings and FanDuel were “in violation” of the state law that prohibits illegal gambling.
“If they have to, if they saying it’s illegal, it’s illegal there has to be something that will cause them to get to that point”, one said.
“As dominoes continue to fall, my approach may be more palatable to the (daily fantasy sports) industry now”, said Dunbar, R-Westmoreland. “This is weird. And it will be challenged”.
“My impression of this is the AG’s office may be a little shallow on its understanding of daily fantasy”, he continued.
For both sites to grow as fast as they have and not have any plan in place for oversight seems very naive.
On the opposite side of the country, Nevada shut down daily fantasy sports sites last month, and in California, mounting state legislation could deal a similar blow, despite residents who disagree with the concept of an all-out ban.
“We’re looking at an industry that employs nearly 400 people”. While those allegations were disproven, sites like DraftKings and FanDuel found themselves under intense scrutiny, with a few consumer advocates accusing the company of running an unregulated gambling operation.
“We continue to see a number of other officials, including Senator Negron in Florida, Representative Zalewski in IL and the Federal Trade Commission, take a reasoned, informed and measured approach to the daily fantasy sports business”, the statement reads in part. FanDuel raised about $275 million in venture capital over the summer, a portion coming from professional sports team.
Robert McLaughlin, director of the NY State Lottery from 2006 to 2007, said he believes Schneiderman should be on solid legal ground.
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“I don’t want to lose my money”, he said.
