Fantasy companies FanDuel, DraftKings go to court
November 13, 2015 11:29 AM
by Phil Hevener
Fantasy sports giants FanDuel and DraftKings have gone on the offense and headed to court to block enforcement of the New York attorney general’s ruling that their business in the state constitutes illegal gambling.
Bloomberg reported that “New York is integral” to the two companies that handle more than 90 percent of the daily fantasy sports business conducted in New York and across the country.
DraftKings and FanDuel are valued at more than $1 billion each, according to Bloomberg, “and have drawn investors from across the sports, media and venture capital industries. The state (New York) accounts for 13 percent of the nation’s fantasy sports market followed by California with 10 percent.”
Suits by the two companies were filed in New York Supreme Court. Schneiderman’s order has already disrupted business and the attorney general pressured payment processors to stop providing the companies service unless it suspends its New York operations.
FanDuel seeks an expedited ruling that its contests do not constitute gambling or bookmaking under New York law.
The companies have long contended that the products they offer sports fans are games of skill and not gambling .
Phil Hevener has been writing about the Nevada gaming business for more than 30 years. Email: PhilHevener@GamingToday.com.