A NY judge on Monday denied temporary restraining orders from DraftKings and FanDuel to continue running their respective daily fantasy sports operations in the state, according to a report from Reuters.
Advertisement
“It’s pretty naive to go get gambling licenses in the United Kingdom and expect people to believe you’re not gambling”, said Shergul Arshad, founder of Mondogoal, a U.K.-based daily fantasy sports startup focused on professional soccer that would likely compete with DraftKings and FanDuel.
Schneiderman is pressuring the companies’ payment processor, Vantiv, “in an effort to achieve a shutdown of FanDuel’s business with NY participants independently of the judicial process”, FanDuel said.
They return to court November 25. “He has unleashed an irresponsible, irrational, and illegal campaign to destroy a legitimate industry, intending to deprive hundreds of thousands of New Yorkers of the use and enjoyment of these services”.
FanDuel and DraftKings are not as valuable as a few may think, Colossus Bets founder and CEO Bernard Marantelli has said.
NY is the most recent state to weigh in on with a view on the legality of fantasy sports.
“I’m not easily shocked, but this has been a shocking, irresponsible, irrational and illegal rush to judgment”, DraftKings lawyer Randy Mastro said in court.
Strockyj is a New York-based attorney and legal commentator.
The finding by Attorney General Eric Schneiderman that the sites are gambling, rather than games of skill, could shut the sites out of a key market and start a domino effect in other states. First, the NY attorney general issued cease-and-desists to DraftKings and FanDuel.
At the time, it was considered a way to strengthen the 1961 Federal Wire Act, but curiously no one could say for sure how fantasy sports ended up with an exemption. Company spokeswomen Justine Sacco stated that they are two days behind for Paypal withdrawals and three days late for check withdrawals. As he so often does in his incredulous manner, Oliver says the things we know to be true about daily fantasy sports, while also being amusing.
Advertisement
Investors have poured almost $1 billion into DraftKings and FanDuel alone. The companies typically return most of that money to players as prizes, keeping a fee of about 10 percent.
