In what is a huge blow to DFS sites, NY Attorney General Eric T. Schneiderman has declared that daily fantasy sports is gambling and illegal. As a result of Schneiderman’s ruling, he has ordered that Fanduel and Draftkings must stop accepting bets effective immediately in the state of New York.
he New York State attorney general on Tuesday ordered the two biggest daily fantasy sports companies, DraftKings and FanDuel, to stop accepting bets in New York, saying that their games constituted illegal gambling under state law, according to people with knowledge of his investigation.
The cease-and-desist order by the attorney general, Eric T. Schneiderman, is a major blow to a multibillion-dollar industry that introduced sports betting to legions of young sports fans and has formed partnerships with many of the nation’s professional sports teams. Given the New York attorney general’s historic role as a consumer-protection advocate, legal experts say the action will most likely reverberate in other states where legislators and investigators are increasingly questioning whether the industry should operate unfettered by regulations that govern legalized gambling.
This is terrible news for daily fantasy players as it seems that it’s likely that other states will soon follow suit.
[H/T Crossing Broad]