Citigroup Suspends Service for Daily Fantasy Sports Betting

Published Sunday, February 07, 2016 -
Citigroup Suspends Service for Daily Fantasy Sports Betting

The legal eagles in America are making good money with the latest controversy surrounding fantasy sports betting in the USA. The banks and money processing agencies in the USA are in some ways being used as the hammer to stop the flow of funds that are being applied to online daily fantasy sports betting activities. The legal limbo that daily fantasy sports operators have found themselves in in some jurisdictions in the USA has created a similar situation to the 2006 prohibition on online gambling seeing financial institutions and credit card firms suspending services related to internet betting of any sort.

As if the daily fantasy sports betting industry wasn’t involved in enough trouble regarding the legality of the activity now Citigroup has decided it will no longer accept any transactions for daily fantasy sports betting in New York from the two largest operators DraftKings and Fan Duel. Using legal issues as the reason Citigroup said it will block transactions until the New York courts ruled on the legality of daily fantasy sports betting. As reported by Bloomberg News recently Citigroup provides money through its credit cards and another financial institution, Vantiv, processes the actual wagers.

The incredible growth of the daily fantasy sports betting industry was spurred on by the barrage of advertizing aimed at the youthful demographic that promised big prizes and easy wins. Then with the turn of the cards jurisdictions such as New York and Texas have started to investigate the legality of the games and determined daily fantasy sports to be gambling. What at one time looked to be the new age of online betting that found a legal loophole has turned into a legal nightmare that lawyers are having a field day with. When one major financial institution pulls the rug out from under the daily fantasy sports industry it is almost a sure bet that others will follow suit.


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