The two biggest Daily Fantasy Sports sites, DraftKings and FanDuel, issued defiant statements following New York Attorney General Eric Schneiderman order for the two companies to cease taking bets from state residents.
“This is a politician telling hundreds of thousands of New Yorkers they are not allowed to play a game they love and share with friends, family, co-workers and players across the country,” FanDuel said in a statement. “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.”
FanDuel did not exactly mince words in their suggestion that Schneiderman is some type of “attention whore”.
Sabrina Macias, a spokeswoman for DraftKings, offered a more toned down approach to Schneiderman’s decision.
“We’re disappointed he hasn’t taken the time to meet with us or ask any questions about our business model before his opinion,” Macias said while point out there are more than 500,000 daily fantasy sports users in New York State.
A spokesperson for the Attorney General claims their were a number of meetings with his office and the two companies.
“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,” Mr. Schneiderman said, adding, “Today we have sent a clear message: not in New York, and not on my watch.”
Daily Fantasy Sports is sometimes referred to as the “crack cocaine” of season long fantasy leagues as contests provide a daily or weekly adrenaline rush.
While DraftKings and FanDuel argue that what they offer is a game of skill and not gaming, legislation passed in 2006 specifically exempts fantasy sports contests along with state lotteries and horse racing. Other than the shorter durations, one can argue that Daily Fantasy Sports is legal under current gambling laws at the federal level. However, many companies in the sector have opted not to allow customers from a handful of states that explicitly forbid contest offerings for cash.
– Aaron Goldstein, Gambling911.com
