New York attorney general Eric T. Schneiderman has informed DraftKings and FanDuel to cease and desist doing business in the state.
“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,” Schneiderman said. “Today we have sent a clear message: not in New York, and not on my watch.”
“We’re disappointed he hasn’t taken the time to meet with us or ask any questions about our business model before his opinion,” a spokesperson for DraftKings, which said it has 500,000 users in New York, told the Times.
“Fantasy sports is a game of skill and legal under New York state law,” FanDuel said in a statement issued to the Times. “This is a politician telling hundreds of thousands of New Yorkers they are not allowed to play a game they love and share with friends, family, co-workers and players across the country.”
The companies can challenge Schneiderman’s decision in court.
According to the Times, Schneiderman concluded that DraftKings and FanDuel “seriously mislead New York citizens about their prospects of winning,” and that “the top one percent of DraftKings winners receive the vast majority of the winnings.”