Daily fantasy sports halted in New York, AG declares practice illegal gambling - Market... - 0 views
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New York Attorney General Eric Schneiderman has ordered fantasy-sports operators Fan Duel Inc. and DraftKings Inc. to shut down in the state, saying that the games constitute illegal gambling and are subject to criminal penalties.
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A handful of other states have previously said fantasy sports amounts to gambling and isn’t allowed. But Tuesday’s cease-and-desist order from New York is the first time fantasy-sports operators have been formally accused of criminal activity. It is the latest blow for the daily fantasy industry, dominated by FanDuel and DraftKings, which faces a federal criminal probe and scrutiny of state legislatures over the legality of their business model and the oversight of their operations.
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“Daily fantasy sports is neither victimless nor harmless,” Schneiderman said in a statement. “And it is clear that DraftKings and FanDuel are the leaders of a massive, multibillion-dollar scheme intended to evade the law and fleece sports fans across the country.” FanDuel responded in a statement: “This is a politician telling hundreds of thousands of New Yorkers they are not allowed to play a game they love…. The game has been played — legally — in New York for years and years, but after the attorney general realized he could now get himself some press coverage, he decided a game that has been around for a long, long time is suddenly now not legal.”