By Paul Nicholson
March 23 – Daily fantasy sports operators FanDuel and DraftKings have stopped paid games in the New York market. The companies are in a battle with the state’s attorney general over whether the games are illegal gambling.
New York Attorney General Eric Schneiderman argues the contests rely on chance and are illegal under state law and hence won a court order to have them shut down in the key New York market. That injunction is currently under appeal allowing DraftKings and FanDuel to operate – they argue their contests require skill.
The new agreement will suspend paid games until an appeal is heard in September.
Schneiderman said in a statement: “As I’ve said from the start, my job is to enforce the law, and starting today, DraftKings and FanDuel will abide by it. Today’s agreement also creates an expedited path to resolve this litigation should that law change or upon a decision by the appellate division.”
New York has taken a hardline approach to DFS games but state lawmakers could easily pass legislation allowing and regulating paid daily fantasy sports, hence ending the state’s gambling claims. A number of other US states have already rule in this way preferring the tax dollars to the prohibition.
Schneiderman also said that if daily fantasy sports are legalised in New York this year, the gambling claims against the companies will be dropped.
The DFS sector has attracted heavyweight investors and quickly established itself as a major sports sponsor in US major league sports. DraftKings recently opened up in Europe targeting the football market with deals with Arsenal, Liverpool and Watford to promote their games.
In a somewhat muted statement, DraftKings said: “As part of a settlement reached with the Attorney General’s office, DraftKings will stop offering paid daily fantasy sports contests in New York State.
“We are an industry leader in technology, innovation and consumer protections, and we are grateful to the hundreds of thousands of New Yorkers who have enjoyed playing fantasy sports on DraftKings for the last 4 years. We will continue to work with state lawmakers to enact fantasy sports legislation so that New Yorkers can play the fantasy games they love.
Contact the writer of this story at moc.l1714141578labto1714141578ofdlr1714141578owedi1714141578sni@n1714141578osloh1714141578cin.l1714141578uap1714141578