New York A.G. tells DraftKings and FanDuel to stop doing business there

[MichaelWinicki]

The embattled daily fantasy industry has absorbed what could be its most crippling blow yet.

Via the New York Times, New York attorney general Eric T. Schneiderman has informed DraftKings and FanDuel to cease and desist doing business in the state.

“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 said. “Today we have sent a clear message: not in New York, and not on my watch.”

http://profootballtalk.nbcsports.co...ngs-and-fanduel-to-stop-doing-business-there/

 

[maxdallasfan]

From the State that doesn't allow UFC events

 

[BrAinPaiNt]

It is clearly a form of gambling that is trying to work around gambling laws.

 

[Rogah]

They brought this on themselves. NY State is the biggest domino yet to fall, but certainly not the last. They should have left well enough alone. Instead, they decided to saturate the media market with endless commercials, mix in the verrrrrrrry seedy practice of individuals using inside info to win money from their competitor's websites, and add in the fact that the leagues and networks are directly invested in these companies.

They deserve all the scrutiny they are finally getting.

 

[EST_1986]

Just as long as Texas doesn't fold I don't care

 

[Rogah]

Just as long as Texas doesn't fold I don't care

It's clearly illegal under state law; it's really just a matter of whether or not they continue to turn a blind eye or enforce the laws.

Texas Statute 47.02 reads:

47.02. Gambling
(a) A person commits an offense if he:
(1) makes a bet on the partial or final result of a game or contest or on the performance of a participant in a game or contest;

 

[EST_1986]

It's clearly illegal under state law; it's really just a matter of whether or not they continue to turn a blind eye or enforce the laws.

Texas Statute 47.02 reads:

47.02. Gambling
(a) A person commits an offense if he:
(1) makes a bet on the partial or final result of a game or contest or on the performance of a participant in a game or contest;

except under federal law Fantasy Football and daily Fantasy Football is considered a game of skill and is legal and that law in for better on the single performance of a single player in a single game

 

[Rogah]

except under federal law Fantasy Football and daily Fantasy Football is considered a game of skill and is legal and that law in for better on the single performance of a single player in a single game

First of all, generally speaking, just because something is legal under federal law doesn't mean that individual states can't outlaw it.

Second of all, the federal law to which you refer, the UIGEA, clearly indicates that individual states can make up their own minds on the matter. So the federal government isn't going to do a darn thing to any of these states outlawing it.

 

[EST_1986]

First of all, generally speaking, just because something is legal under federal law doesn't mean that individual states can't outlaw it.

Second of all, the federal law to which you refer, the UIGEA, clearly indicates that individual states can make up their own minds on the matter. So the federal government isn't going to do a darn thing to any of these states outlawing it.

Well, again, I just hope Texas doesn't wuss out and fold so I can keep playing this wonderful game of skill.

 

[CyberB0b]

It is clearly a form of gambling that is trying to work around gambling laws.

The problem is that the UIGEA specifically carved out fantasy sports as completely legal. This was the same law that ended online poker in the United States.

 

[BrAinPaiNt]

The problem is that the UIGEA specifically carved out fantasy sports as completely legal. This was the same law that ended online poker in the United States.

Fantasy sports are legal and not a form of gambling....when they are free.

 

[CyberB0b]

Fantasy sports are legal and not a form of gambling....when they are free.

Actually, that part doesn't matter, at least not when it comes to the UIGEA.

[The UIGEA does not include] participation in any fantasy or simulation sports game or educational game or contest in which (if the game or contest involves a team or teams) no fantasy or simulation sports team is based on the current membership of an actual team that is a member of an amateur or professional sports organization (as those terms are defined in section 3701 of title 28) and that meets the following conditions:

• (I) All prizes and awards offered to winning participants are established and made known to the participants in advance of the game or contest and their value is not determined by the number of participants or the amount of any fees paid by those participants.

• (II) All winning outcomes reflect the relative knowledge and skill of the participants and are determined predominantly by accumulated statistical results of the performance of individuals (athletes in the case of sports events) in multiple real-world sporting or other events.

• (III) No winning outcome is based

• (aa) on the score, pointspread, or any performance or performances of any single real world team or any combination of such teams; or

• (bb) solely on any single performance of an individual athlete in any single real-world sporting or other event. 3

 

[Rogah]

Actually, that part doesn't matter, at least not when it comes to the UIGEA.

See my above post regarding the notion that just because something is legal under federal law does not necessarily mean states can't make it illegal under state law.

 

[burmafrd]

would love to see all this fantasy crap get blown away!

 

[Nightman]

Fantasy sports are legal and not a form of gambling....when they are free.

They were protecting the year long, friends and family leagues that had a first place prize at the end of the year. Similar to the Super Bowl squares or NCAA Brackets. It isn't going back to the well week after week that is costing someone their rent or food money.

I think DFS will be found to be gambling just like on-line poker and the accounts will be frozen if they continue or move offshore. The main problem is the corruptibility of the game. The inside information of who is playing who the most and the ability to enter 100s of entries with a computer program skews the odds tremendously.

Why do you think they had to ban employees from betting on the other sites? It was like stealing money. Imagine you go to play Poker at a 1-2 dollar game with $400 stake. All of a sudden they take away the max bets and some guy with $5000 just goes all in every hand and wins every pot. That is what is happening but the small players don't know it. It is possible they get lucky and win, but it will still be watered down and a lot more random than they advertise.

 

[Nightman]

They brought this on themselves. NY State is the biggest domino yet to fall, but certainly not the last. They should have left well enough alone. Instead, they decided to saturate the media market with endless commercials, mix in the verrrrrrrry seedy practice of individuals using inside info to win money from their competitor's websites, and add in the fact that the leagues and networks are directly invested in these companies.

They deserve all the scrutiny they are finally getting.

Draftkings and Fanduel had to act quickly and aggressively or they might have lost their market share. Yahoo and other companies want into the multi-billion market and if it was going to stay legal they wanted a bigger piece. I am surprised the 2 didn't merge but I guess things were already growing too quickly.

You are right about the shady practices. The employees betting and winning big on the competitors site and the computer scripts that could produce 100's of entries were 2 big problems. Anytime the money gets that big people will try to scam or steal it. The poker sites couldn't resist cheating by having dummy accounts and looking at the cards online.

 

[MichaelWinicki]

The whole thing is going to go away and the folks that invested in those entities are going to take a bath.

 

[Floatyworm]

When are people gonna figure out the state that is pushing this is controlled by Wall St. and the mob?

The rest of America wants to gamble.....Yet Nevada and New York want to hog it for themselves.

I hope all forms of gambling is made legal. FF and On-line poker- sports betting.

There is nothing wrong w/ gambling.

 

[LittleBoyBlue]

The whole thing is going to go away and the folks that invested in those entities are going to take a bath.

Sounds like it...

But can we get a definitive on this?

Will it stay or will it go napster?

 

[Floatyworm]

Sounds like it...

But can we get a definitive on this?

Will it stay or will it go napster?

NEW YORK - The New York state attorney general has ordered fantasy sports betting sites DraftKings and FanDuel to cease operations in the state.

The companies must stop taking bets effective immediately.

A DraftKings' spokesperson told The New York Times that the site had 500,000 in New York.

“We’re disappointed he hasn’t taken the time to meet with us or ask any questions about our business model before his opinion,” DraftKings' spokesperson Sabrina Macias said.

In Massachusetts, online fantasy sports betting has become a hot topic for discussion among politicians. House Speaker Robert DeLeo told FOX25 he expects the businesses to be regulated.

>> READ MORE: Lawmakers expect to draft regulations for fantasy sports sites

Draft Kings released the following statement Tuesday:

"We are very disappointed that New York Attorney General Eric Schneiderman took such hasty action today, particularly since he did not take any time to understand our business or why daily fantasy sports are clearly a game of skill. We strongly disagree with the reasoning in his opinion and will examine and vigorously pursue all legal options available to ensure our over half a million customers in New York State can continue to play the fantasy sports games they love.

"We continue to see a number of other officials, including Senator Negron in Florida, Representative Zalewski in Illinois and the Federal Trade Commission, take a reasoned, informed and measured approach to the daily fantasy sports business. We hope this trend continues along with due consideration for over 56 million sports fans across the country who enjoy playing fantasy sports. We remain committed to working with all relevant authorities to ensure that our industry operates in a manner that is transparent and fair for all consumers.

"New York's actions today are an unfortunate example of a state government stifling innovation, technology and entrepreneurship and acting without full and fair consideration of the interests of consumers."
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W/ 56 million fans playing on their site...That's not going away anytime soon unless the Government tell them so. And then the people can go to the polls and vote those who don't want gambling out. This is far from over.