US daily fantasy sports market leaders FanDuel and DraftKings are reported to be reviewing their legal options following this week’s issuance of a cease & desist’ order by New York Attorney General Eric T Schneiderman.
After its one month investigation into DFS services provided by FanDuel and DraftKings, the New York AG has concluded that DFS contests and competitions can be defined as sports betting which is therefore in breach of US internet regulations.
The New York AG has demanded that both operators terminate their services for New York state consumers.
Both operators reacted quickly to Schneiderman’s statement, outlining that fantasy sports had been played legally in New York for a number of years.
“DraftKings is working with the international law firm Gibson, Dunn & Crutcher LLP on all civil matters, investigations and regulatory inquiries, including the current situation in New York. We intend to pursue this fight to the fullest to ensure that hundreds of thousands of New York fantasy sports fans can continue to play the games they love,” DraftKings said in a statement.
In a separate news story, the Associated Press reported that the companies are fiercely rejecting the idea that their rapidly growing industry should be considered gambling in the United States, but are okay with that label in the United Kingdom. They’re embracing it as a step toward global expansion.
U.K. gambling regulators granted a gambling license to DraftKings in August, while FanDuel applied earlier this month for a license as a “gambling software” company.
Jeffrey Haas, chief international officer for DraftKings, maintains there’s no contradiction. DraftKings is simply approaching each jurisdiction case by case, he said.
“Our product is a game of skill. In order to be successful, you need to apply your skill in order to have the best lineups to go into our contests to win,” Haas said.
“Nevertheless, our games of skill are looked at differently by regulators in different jurisdictions around the world.”