FanDuel,
DraftKings to fight New York order halting bets
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[November 12, 2015]
By Liana B. Baker
(Reuters) - Daily fantasy sports sites
FanDuel and DraftKings were preparing to fight back against a
declaration by New York state's top prosecutor that they were running
illegal gambling operations and ordered them to stop taking bets in the
state.
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DraftKings called the decision by New York Attorney General Eric
Schneiderman "hasty and uninformed" and said it was prepared to
mount a challenge in court so the company could continue operating
in the state.
"We will pursue this fight to the fullest to ensure that New York
fantasy sports fans do not need to stop playing," DraftKings said in
a statement on Wednesday.
DraftKings and FanDuel also began mobilizing hundreds of thousands
of their users in New York state, asking them to send Schneiderman
emails voicing support for the games. FanDuel said they have more
than 600,000 players in the state; DraftKings said there were more
than 500,000 daily fantasy players there.
![](http://archives.lincolndailynews.com/2015/Nov/12/images/ads/current/SCIL_bch_100215.png) The two companies, which have five business days to respond to the
order issued by Schneiderman on Tuesday, have continued to take
money from customers in the state, they said.
DraftKings and FanDuel have both hired former New York prosecutors
for advice as scrutiny by regulators and law enforcement agencies
intensifies.
DraftKings and FanDuel have been at the center of a firestorm of
controversy since early October when a DraftKings employee won
$350,000 from a $25 entry in an American football contest on the
rival FanDuel site. The two companies then banned their employees
from playing, but local and federal authorities began to investigate
whether the fantasy sites offered games of chance, which were
essentially gambling.
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Schneiderman sent "cease-and-desist" letters to the fantasy sites
telling them they were in violation of state law against illegal
gambling because they "are clearly placing bets on events outside of
their control or influence, specifically on the real-game
performance of professional athletes."
In the games, fans pay to compete for daily cash prizes based on the
performance of professional athletes. Schneiderman's order does not
apply to season-long fantasy sports contests.
(Additional reporting by Suzanne Barlyn)
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