New York's Attorney General Calls DFS Illegal Gambling

Published Wednesday, November 11, 2015 -
New York's Attorney General Calls DFS Illegal Gambling

The New York Attorney General has declared Daily Fantasy Sports as illegal gambling in the Empire State. This announcement comes on the heels of the recent controversial event in which information was leaked regarding team stats with which an employee of DraftKings won a substantial amount of money at a competitor’s site. The Attorney General Eric Schneiderman said after the incident he would launch an inquiry into DraftKings and FanDuel the two frontrunners in the Daily Fantasy Sports betting industry.   

Schneiderman has come to the conclusion that DFS is indeed a form of illegal gambling in New York. The Attorney General has ordered the two firms to cease taking bets from the residents of New York. Schneiderman said, “Our review concludes that DraftKings’/FanDuel’s operations constitute illegal gambling under New York law,” Schneiderman also said customers of DraftKings and FanDuel, are “clearly placing bets on events outside their control of influence, specifically on the real game performance of professional athletes. ” Schneiderman  continued, “Our investigation has found that, unlike traditional fantasy sports, daily fantasy sports companies are engaged in illegal gambling under New York law, causing the same kinds of social and economic harms as other forms of illegal gambling and misleading New York consumers,"  “DFS is neither victimless nor harmless, and it is clear that DraftKings and FanDuel are the leaders of a massive, multi-billion-dollar scheme intended to evade the law and fleece sports fans across the country. Today we have sent a clear message: not in New York and not on my watch.”

 DraftKings and FanDuel denied that DFS breaks state law in New York, with a statement in defense, “We are very disappointed that New York Attorney General Eric Schneiderman took such hasty action today, particularly since he did not take any time to understand our business or why daily fantasy sports are clearly a game of skill.”

FanDuel also responded, “We have operated openly and lawfully in New York for several years. The only thing that changed today is the Attorney General's mind.”



Related news

Return to Latest News