FanDuel and DraftKings told to skedaddle from New York with real-money services

New York State Attorney General’s office has ordered that FanDuel and DraftKings stop accepting wagers from players in the state, believing daily fantasy sports (DFS) constitutes a game of chance under state law and not a game of skill.

The New York Times published a copy of the letter sent to FanDuel CEO Nigel Eccles, where Attorney General Eric T. Schneiderman’s name appeared at the top of the letter sent by Kathleen McGee, bureau chief, internet bureau of the Attorney General’s office.

McGee stated in the letter: “This letter constitutes a demand that FanDuel, Inc. (‘FanDuel’) cease and desist from illegally accepting wagers in New York State in connection with ‘Daily Fantasy Sports’.

“Our review [which commenced on October 6] concludes that FanDuel’s operations constitute illegal gambling under New York law.”

FanDuel has been given a period of five business days from receipt of the notice, which was sent on Tuesday, to respond in writing or orally to state why the Attorney General should not initiate any proceedings.

It was reported that DraftKings has also been ordered to stop accepting bets in the state.

DFS operators were banned from operating real-money DFS in Nevada in October, unless they possess a licence to operate a sports pool in the state.

Schneiderman is quoted by the New York Times as saying: “It is clear that DraftKings and FanDuel are the leaders of a massive, multi-billion-dollar scheme intended to evade the law and fleece sports fans across the country. Today we have sent a clear message: Not in New York, and not on my watch.”

FanDuel said in a statement that “fantasy sports is a game of skill and legal under New York state law” and accused Schneiderman of using the issue to gain publicity for himself.

Schneiderman’s office wrote to both operators in October asking for information regarding policies for the access of data by employees.

That followed Ethan Haskell, written content manager at DraftKings, accidentally releasing data about a Millionaire Maker National Football League contest that DraftKings hosted in October.

Haskell reportedly won $350,000 playing with FanDuel in the same week that the data was leaked.

Matthew Boccio, who works in product operations at FanDuel, was in the same month reported by DFS Report to have become one of the top 50 overall DFS players ranked by RotoGrinders, using the username PetrGibbons.