One of the hottest esports startups of 2015 is shutting down the core of its business, that being its real money fantasy contests.
The company made the shock announcement on Monay.
The move comes in response to increasing regulation on daily fantasy sports in many States around the country.
In the wake of New York and a handful of other states efforts to scare off Daily Fantasy Sports sites the likes of DraftKings and FanDuel, Indiana is taking on an entirely different approach.
Rick Moran of American Thinker expressed dismay over New York Attorney General Eric Schneiderman’s attempts to “destroy two legitimate companies”, those being Daily Fantasy Sports sites DraftKings and FanDuel.
A Hall of Fame bookmaker and a former executive consultant for Del Mar Thoroughbred Club are teaming up to offer a new version of daily fantasy sports, based on an old form of betting (pari-mutuel wagering), that could be coming to a race track near you.
One of the better pieces dealing with the sports wagering industry we have read in some time also delves into the relationship between the NFL and Daily Fantasy Sports firms DraftKings and FanDuel.
More so the article focuses in on SportsRadar’s new deal with the National Football League and that companies long cozy relationship with sports betting firms.
FanDuel and DraftKings each saw a drop in entry fees for their typically lucrative NFL contests last weekend, even after a New York appeals court granted the daily fantasy sports operators temporary permission to resume business in the state, according to Fox Business. Sagging revenues are being blamed on both companies expensive legal battle with the state of New York following Attorney General Eric Schneiderman’s declaration that both engage in illegal online gambling.
Over 40 speakers have already committed to the 2nd ever Daily Fantasy Sports Expo to be held once again in Miami Beach March 3-4, 2016.
"I am completely taken aback by the amount of interest in this conference, considering everything that has been transpiring iwithin the industry,' remarked conference organizer Marc Lesnick.
DraftKings and FanDuel have successfully obtained an injunctive relief through an emergency order which will allows both daily fantasy companies to continue to operate in the state of New York.
DraftKings legal counsel on Friday afternoon confirmed they would file an Emergency Notice of Appeal in the wake of a New York Superior Judge upholding a decision to ban it and rival FanDuel from operating in the Empire State.
Judge Manuel Mendez released his decision Friday morning.
December 11: JUDGE RULES AGAINST DRAFTKINGS, FANDUEL
DFS911.com anticipates a decision in the New York state court matter involving DraftKings and FanDuel over the next two days and no later than Monday December 14. The following is an update from reporter Jeff Williams.
New York Superior Court Judge Manuel Mendez will be making his decision on whether DraftKings and FanDuel can operate in the state of New York.
Judge Mendez stated that his decision will come within a one to two week period. We are now beyond that one week time frame.
The hearing took place following New York Attorney General Eric Schneiderman’s decree that Daily Fantasy Sports is nothing more than illegal gambling. He demanded that both FanDuel and DraftKings cease operations in the state.
The 2011 shutdown of Fantasy Thunder -- a NASCAR-focused fantasy site based near Spokane, Washington, and in operation for about five years according to witness testimony -- was mentioned in court filings now before Judge Mendez, ESPN.com’s Ryan Rodenberg notes.
The Green Bay Packers struggles in recent weeks have reflected on starting quarterback Aaron Rodgers Daily Fantasy NFL performance.
Last week, Rodgers completed 22-of-43 passes for 202 yards with one touchdown and one interception and rushed four times for 33 yards in the Packers' Week 12 loss to the Bears.
Stopping by the Courthouse on 71 Thomas Street in New York City all was quiet our intrepid reporter Jeff Williams observed Friday, but that was hardly the case this past Wednesday when hoards of reporters and other observers packed inside the relatively small space during a hearing to determine the fate of Daily Fantasy Sports in New York State.
“The volume of attendees was unprecedented,” the Court officer told Williams, who himself has never seen court hearings teeming with this many people.
Judge Manuel Mendez will decide on whether Daily Fantasy Sports sites DraftKings and FanDuel can continue to operate in the state of New York in one to two weeks. He opted not to make his decision at the conclusion of Wednesday's hearing.
NY Attorney General Eric Schneiderman ordered the two companies to stop conducting business in the state after determining their activity to be a form of “illegal gambling”.
DFS911.com, present at the Wednesday November 25 hearing to determine whether Daily Fantasy Sports sites FanDuel and DraftKings can continue to operate in the state of New York, has obtained the actual court filings pertaining to the case below.
The two big Daily Fantasy Sports (“DFS”) operators, FanDuel and DraftKings, and their backers, are, in the immortal words of former President George H.W. Bush, in “deep-doodoo.” But lawyers with legal shovels can probably dig them out.
As recently as last year, the DFS industry’s problems were relatively insignificant. As in the early days of Internet poker, operators were making so much money that they could afford to brush off the few scattered questions about the games’ legality.
FanDuel was hardly letting up on its aggressive advertising campaign during this football season amidst a crackdown by the New York Attorney General’s office. In fact, they may have just upped the ante.
On Sunday, FanDuel began advertising the refund of entry fees. Reportedly this just applies to the very first entry fee made, though this restriction is easy to miss when first catching the commercial.
Gambling911.com/DFS911.com will have reporter Jeff Williams in the court room Wednesday monitoring a hearing to determine whether Daily Fantasy Sports giants DraftKings and FanDuel will still be able to accept New York State residents.
Earlier this month, New York Attorney General Eric Schneiderman determined that Daily Fantasy Sports is actually illegal online gambling in disguise. DraftKings and FanDuel both insist their daily and weekly contests are games of skill, not gambling.
Sports Illustrated is reporting that the latest class action lawsuit involving Daily Fantasy Sports filed in the state of Florida names the National Football League, NBA, Jerry Jones, the Kraft Family and American Express among others.
From Sports Illustrated:
In the wake of a probe of the Daily Fantasy Sports industry by New York Attorney General Eric Schneiderman, it was revealed Friday that a class-action lawsuit has been filed against DraftKings and FanDuel as well as major credit card companies and payment processors claiming the plaintiff and others are “one of thouseands of people who have wagered and lost money through FanDuel’s and DraftKing’s illegal sports gambling websites”.
The fantasy sports sector was left frustrated Thursday wondering why the Fantasy Sports Trade Association had apparently allowed a major media outlet to gain access to damning meeting notes.
ESPN revealed Thursday that they had obtained FSTA meeting minutes in which DraftKings CEO Jason Robins essentially admitted that his company had knowingly broke the law as it pertains to violation of the Unlawful Internet Gaming Enforcement Act.
The FSTA was also subpoenaed to provide similar information to the New York Attorney General’s office with what appears to be little fight.
New York State Attorney General Eric Schneiderman expanded his probe into Daily Fantasy Sports sites this week, issuing subpoenas against media giant Yahoo. That company entered the DFS market this past summer.
The attorney general sought an injunction on Tuesday to prevent both DraftKings and FanDuel from operating within the state, calling the companies “plainly illegal” and “nothing more than a rebranding of sports betting.”
One of the primary investors in Daily Fantasy Sports site Star Fantasy Leagues as well as a stakeholder in Ladbrokes, Dermot Desmond, has attacked that UK bookmaker’s merger with Coral saying it is “the wrong deal”.
The Irish billionaire is considered to be Ireland’s answer to Warren Buffett.
“Ladbrokes’ shareholders should instruct the board to properly evaluate all strategic options open to it before committing to what I believe is the wrong deal,” he said.