New York State AG Schneiderman Outlaws Daily Fantasy Sports
New York State's Attorney General Eric Schneiderman announced Tuesday that daily fantasy sports sites such as Fanduel and Draft Kings will now be considered illegal gambling in New York State.
According to the State Attorney General's website Schneiderman sent both companies a cease-and-desist notice on Tuesday, stating that both Fanduel and Draft Kings' operations constitute illegal gambling under New York State law.
“Our investigation has found that, unlike traditional fantasy sports, daily fantasy sports companies are engaged in illegal gambling under New York law, causing the same kinds of social and economic harms as other forms of illegal gambling, and misleading New York consumers. Daily fantasy sports is neither victimless nor harmless, and it is clear that DraftKings and FanDuel are the leaders of a massive, multi-billion-dollar scheme intended to evade the law and fleece sports fans across the country. Today we have sent a clear message: not in New York, and not on my watch," Schneiderman said.
Fanduel released a statement to ESPN.com in response to the Attorney General's comments:
"Fantasy sports is a game of skill and legal under New York State law," FanDuel said in a statement. "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, coworkers and players across the country. 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. We have operated openly and lawfully in New York for several years. The only thing that changed today is the Attorney General's mind."
A notice on the Fanduel website states:
"Notice – This weekend’s contests will run as normal, with no restriction for NY users to play. FanDuel received a letter from the NYAG’s but no action is immediately required. We will alert NY users immediately if there is any changes to your ability to enjoy playing on FanDuel. We believe the AG’s interpretation of the law is wrong and that he has mischaracterized our customers and our business. Please reach out to our customer service team if you have questions."
Fanduel has also sent users a form email they can sign and forward to the Attorney General's office along with a pre-written tweet that can be found on Twitter @Fanduel.
What do you think? Are daily fantasy sports harmful? Do you agree with Schneiderman's office, or do you side with Fanduel and Draft Kings?