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Daily Fantasy Sports Declared Illegal in New York

By John Burns, Associate Editor
November 12, 2015

DraftKings

New York Attorney General Eric Schneiderman declared daily fantasy sports, such as those run by DraftKings and FanDuel, as illegal gambling in the state.

The daily fantasy sites were sent cease-and-desist notices Nov. 10, and while New York residents cannot use the sites anymore, the company may still conduct its national business in New York, according to a New York Times report.

“It is clear that DraftKings and FanDuel are the leaders of a massive, multibillion-dollar scheme intended to evade the law and fleece sports fans across the country,” Schneiderman says. “Today we have sent a clear message: not in New York, and not on my watch.”

Legal experts say the action taken by Schneiderman is likely to reverberate in other states where legislators and investigators are determining if daily fantasy sports should continue to operate without regulations, according to the New York Times.

Daily fantasy sites say their games are not gambling, because they involve more skill than luck. According to Sabrina Macias, a spokeswoman for DraftKings, there are more than 500,000 daily fantasy sports participants in New York.

A day after Schneiderman’s ruling, FanDuel and DraftKings both announced they would pursue all legal options to remain in operation in the state. — J.B.