- The New York Attorney General has classified daily fantasy sports as illegal gambling under state law.
- New York AG sees DFS as similar to poker.
- DraftKings and FanDuel have vowed to fight.
- At least one payment processor is requiring DFS operators they serve to pull out of New York.
The New York Attorney General Has Classified Daily Fantasy Sports As Illegal Gambling Under State Law
Following an investigation into the Daily Fantasy Sports industry that began on October 6, Attorney General for the state of New York, Eric T. Schneiderman, found the games to be illegal gambling under state law.
On Tuesday, Schneiderman issued cease-and-desist letters to DraftKings and FanDuel demanding they stop accepting wagers in the state. He also issued these damning statements about the games in general and DraftKings and FanDuel in particular:
“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.”
