New York judge upholds AG's fantasy sports order
December 11, 2015 9:36 AM
by Phil Hevener
A New York judge has upheld the order of Attorney General Eric Schneiderman that daily fantasy sports companies DraftKings and FanDuel should stop taking bets from New York residents.
Analysts had previously said that the New York case – whatever the decision would likely have an impact in other states where regulators are still trying to decide whether this issue involves gambling or, as the companies argue, a bettor’s actions are primarily skill-based.
Both companies are expected to appeal the decision because it is definitely not the last word so far as the daily fantasy sport business is concerned. Massachusetts Attorney General Maura Healey has proposed regulations that, if accepted, would allow all companies with a daily fantasy product to continue doing business in her state.
The New York Times reported Friday morning that a key issue facing the judge there was whether the competitions are games of chance or games of skill. Her argument was that they are “clearly gambling” because they depend on events outside the bettor’s control.
The decision announced Friday is a major setback for the companies because New York with more than 1.2 million customers is the largest single market for the two companies.
Major North American sports leagues have embraced the daily fantasy business, partnering with the companies and accepting advertising.
In Nevada, veteran bookmaker Vic Salerno is the first to apply for a daily fantasy sports betting license.
Phil Hevener has been writing about the Nevada gaming business for more than 30 years. Email: PhilHevener@GamingToday.com.