Daily Fantasy Sports Exits New York Temporarily
Daily fantasy sports has left the building. That’s the case in New York, at least temporarily. Per reports, the top two DFS operators – DraftKings and FanDuel – have agreed to a settlement with New York state attorney general Eric Schneiderman to cease real-money operations in the state until July.
The settlement could turn into a long-term ban should DFS not be made legal by New York by July 30th. At that time, the ban would stand and both DK and FD would have to cease paid operations, full-time.
The agreement also points to a restart time, which would be July 1st at the earliest, should DFS be made legal in the state of New York.
Schneiderman issued a statement on the settlement:
“As I’ve said from the start, my job is to enforce the law, and starting today, DraftKings and FanDuel will abide by it.”
DraftKings had remained extremely defiant in the face of legal questions in New York, but has finally agreed to cease taking paid bets on daily fantasy sports out of NYC. DK issued their own response:
“We are grateful to the hundreds of thousands of New Yorkers who have enjoyed playing fantasy sports on DraftKings for the last four years. We will continue to work with state lawmakers to enact fantasy sports legislation so that New Yorkers can play the fantasy games they love.”
The move keeps New York players from playing in real money contests until/unless legislation is passed in the state that officially legalizes DFS games.
The recent settlement is just another step in the growing DFS saga, which has had lawmakers take serious notice of the financial benefits that stem throughout the country. Some lawmakers have called for regulation, some have stood up for daily fantasy sports out of pure defense for the public’s right to bet money on fantasy sports, and others have called for a complete ban, deeming it unlawful gambling.
Daily fantasy sports are still technically legal from a federal perspective, having seemingly being given a pass in the Unlawful Internet Gambling Enforcement Act of 2006. The Act specifically excluded “games of skill”, which DFS operators define daily fantasy sports as.
FanDuel chimed in on the news of the New York settlement:
“While it is disheartening for us to restrict access to paid contests in our home state, we believe this is in the best interest of our company, the fantasy industry and our players while we continue to pursue legal clarity in New York.”
New York joins a growing list of states that have taken a stand against DFS, either with a goal to completely ban the genre as a form of gambling, or at least find a way to regulate it.
The industry is likely ultimately heading for a full-blown regulation, country-wide, but it also remains possible that some states will never completely legalize DFS.
How the proceedings go over the next few months with New York – where FanDuel was founded – could have a huge say in how states respond moving forward. The clock is ticking for FanDuel and DraftKings, who now have roughly three months to fight against their current ban in New York.
Premium online gaming company NetEnt continues to show positive growth, wi[...]
The United Kingdom has announced plans to review the gambling machines that[...]
The Miami Dolphins got some shocking news on Tuesday morning, when star run[...]
Week seven was a bunch of fun in daily fantasy football - especially if you[...]