NY Attorney General Orders Draft Kings and FanDuel to Stop Accepting Bets
The New York State attorney general on Tuesday ordered the two biggest daily fantasy sports companies, DraftKings and FanDuel, to stop accepting bets in New York, saying that their games constituted illegal gambling under state law, according to people with knowledge of his investigation.
The cease-and-desist order by the attorney general, Eric T. Schneiderman, is a major blow to a multibillion-dollar industry that introduced sports betting to legions of young sports fans and has formed partnerships with many of the nation’s professional sports teams. Given the New York attorney general’s historic role as a consumer-protection advocate, legal experts say the action will most likely reverberate in other states where legislators and investigators are increasingly questioning whether the industry should operate unfettered by regulations that govern legalized gambling.
This comes on the heels of hearings in Harrisburg, also today, about whether daily fantasy sports are games of skill or gambling.
This is not good news if you like playing Draft Kings (which I do). It seems the influential casinos in Nevada (already made it illegal) and New York, and their deep pockets, have won out in protecting their own interests.
At the very least, the push to legalize online sports gambling will be hastened, because there’s way too much money at stake here for these companies, their backers, partners and leagues to just roll over to the interests of lawmakers and their gambling financiers.