Close to one month after Nevada decided to rule daily fantasy sports as a gambling activity with licensing required to operate in the state, New York has now joined the bandwagon. The state of New York announced this week that FanDuel and DraftKings has to stop operations based on a cease-and-desist order. With the ruling, New York is now the 7th state in the United States to ban sites offering daily fantasy sports sites.
The Attorney General for New York, Eric Schneiderman, stated in the New York Times that it is clear such sites as FanDuel and DraftKings are leaders of a ‘massive, multibillion-dollar scheme’ that is intended to ‘evade the law and fleece sports fans across the country’. Schneiderman feels the decision on daily fantasy sites sends a clear message that this activity will not take place in the state.
Based in New York, FanDuel will still be able to remain in the state but will not be able to offer their services to residents. FanDuel released a statement on the decision, stating that Fantasy sports is a game of skill and is considered legal under state law of New York. FanDuel says that the AG is a politician that is telling hundreds of thousands of residents that they are not allowed to play the game they enjoy and share with individuals across the country.
DraftKings also responded to the decision by stating they are ‘very disappointed’ and strongly disagree with the reasoning of the AG’s opinion. DraftKings plans on examining and pursuing all legal options available to ensure their customers of New York will be able to continue to enjoy fantasy sports games.
While certain states like New York and Nevada are banning the activity, other states are considering the regulation route. This includes such states as Massachusetts where DraftKings is based, Florida, California, Illinois, Indiana and New Jersey.
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