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New York Attorney has ordered fantasy-sports operators Fan Duel Inc. and DraftKings Inc. to shut down in the state, saying that the games constitute illegal gambling and are subject to criminal penalties.
A handful of other states have previously said fantasy sports amounts to gambling and isn’t allowed. But Tuesday’s cease-and-desist order from New York is the first time fantasy-sports operators have been formally accused of criminal activity. It is the latest blow for the daily fantasy industry, dominated by FanDuel and DraftKings, which faces a federal criminal probe and scrutiny of state legislatures over the legality of their business model and the oversight of their operations.
“Daily fantasy sports is neither victimless nor harmless,” Schneiderman said in a statement. “And 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.”
FanDuel responded in a statement: “This is a politician telling hundreds of thousands of New Yorkers they are not allowed to play a game they love…. The game has been played — legally — in New York for years and years, but after the attorney general realized he could now get himself some press coverage, he decided a game that has been around for a long, long time is suddenly now not legal.”
SOURCE
A handful of other states have previously said fantasy sports amounts to gambling and isn’t allowed. But Tuesday’s cease-and-desist order from New York is the first time fantasy-sports operators have been formally accused of criminal activity. It is the latest blow for the daily fantasy industry, dominated by FanDuel and DraftKings, which faces a federal criminal probe and scrutiny of state legislatures over the legality of their business model and the oversight of their operations.
“Daily fantasy sports is neither victimless nor harmless,” Schneiderman said in a statement. “And 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.”
FanDuel responded in a statement: “This is a politician telling hundreds of thousands of New Yorkers they are not allowed to play a game they love…. The game has been played — legally — in New York for years and years, but after the attorney general realized he could now get himself some press coverage, he decided a game that has been around for a long, long time is suddenly now not legal.”
SOURCE
