Things are only getting worse for the definitely skill-based daily fantasy industry, as New York Attorney General Eric Schneiderman ordered DraftKings and FanDuel to cease accepting bets from New York residents. In a prepared statement, Schneiderman assailed daily fantasy, saying it constituted illegal gambling, misled customers, and is intended to “fleece sports fans across the country.”
“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’s order comes one month after he first announced an investigation into DraftKings and FanDuel, and ordered them to turn over reams of information. That investigation was triggered by a DraftKings employee with access to inside info had won $350,000 playing at FanDuel.