USA DFS Struggles With Online Gambling Legal Issues

Published Friday, April 01, 2016 -
USA DFS Struggles With Online Gambling Legal Issues

Daily fantasy sports has hit significant snags in America where the controversy continues to fill the courts with issues as to whether the activity is real money chance gambling or a skill based entertainment that rewards participants with prizes.

The legal fight began in February when a New York judge sided with New York’s Attorney General Eric Schneiderman and granted an injunction  banning DraftKings and FanDuel from the jurisdiction. The judge Manuel Mendez imposed the injunction after Schneiderman said that “a small number of professional gamblers profit at the expense of casual players”. An immediate appeal on the ruling was filed by DraftKings and an agreement was reached in March of 2016 that both FanDuel and DraftKings signed. Schneiderman reacted with 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.”

Now in a surprise turn of events both DraftKings and FanDuel have decided to cease offering fantasy sports betting contests on college sports events in the USA. The move is part of an agreement made with the National Collegiate Athletic Association after talks with the NCAA focused on the future of college sports-based contests in America.

The brands have now “voluntarily and indefinitely” agreed to stop offering their products in a move to garner support from the NCAA, which has been openly critical of operators offering college sports competitions.

Yahoo which also offers Daily Fantasy sports betting has announced that it will no longer accept credit card payments from its DFS customers. Alternatively Yahoo stated that it will still accept deposits from the PayPal online payment service and said it would consider other alternative forms of payments for its DFS clients.


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