( 4UMF NEWS ) State Of New York Rules Against Draft Kings, FanDuel:
New York Attorney General Eric Schneiderman on Tuesday ordered the nation’s two largest fantasy-sports-betting Web sites to cut off gamblers from the Empire State — saying the online operations are illegal and designed to scam sports fans out of billions of dollars.
In cease-and-desist letters to FanDuel and DraftKings, Schneiderman’s office said the booming businesses were breaking New York’s law that prohibits gambling on games of chance.
The letters say the companies’ customers “are clearly placing bets on events outside of their control or influence, specifically on the real-game performance of professional athletes.”
FanDuel and DraftKings were also accused of promoting their wildly popular sites through advertisements that “seriously mislead New York citizens about their prospects of winning.”
The letters further allege that the businesses are “neither harmless nor victimless” and “are creating the same public-health and economic concerns as other forms of gambling, including addiction.”
In a statement, Schneiderman said, “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.”
“Today we have sent a clear message: not in New York, and not on my watch,” he added.
Schneiderman’s move capped a month-long investigation spurred by the revelation that a DraftKings worker beat more than 200,000 other players to win $350,000 on FanDuel, with reports suggesting the feat was pulled off using inside information from his own site’s betting trends.
The attorney general’s action also added fuel to the growing controversy over fantasy-sports betting, which was a hot topic at last month’s Republican presidential primary debate.
New York City-based FanDuel insisted that its games were legal and accused Schneiderman of trying to “get himself some press coverage.”
DraftKings, which is headquartered in Boston, vowed to “vigorously pursue all legal options available to ensure our over half a million customers in New York state can continue to play the fantasy-sports games they love.”