Cease and Desist
New York states attorney general, Eric T. Schneiderman ordered two daily fantasy sports companies, DraftKings and FanDuel, to stop accepting bets from New York residents. The reasoning behind it is that he considers the games constitute illegal gambling under state law.
While the two multi-billion dollar companies have been a hit with young sports fans around the nation, Schneiderman believes these industries are schematic in that they push the boundaries of gambling.
The companies, however, counter that argument in the belief that the games are not a form of gambling, because they involve more skill than luck. The betting industries also state that a 2006 federal law exempted fantasy sports from a prohibition against processing online financial wagering. Fantasy sites, however, have now offered its members million-dollar prizes on various sports.
New York residents were no stranger to DraftKings, as there were over 500,000 daily fantasy sports users, according to spokesperson Sabrina Marcias. The two sides do not seem to agree on what constitutes as legal or not, but Schneiderman was very adamant about the two fantasy companies being forms of illegal gambling in his cease-and-desist notice.
Schneiderman believes that users are placing bets on elements out of their control, and a lot of elements deal with chance or luck, rather than skill. The attorney general’s office said that it is not looking to get any money back from New York residents who may have won money on the sites.
At An Impasse
FanDuel and DraftKings obviously have different mindsets on the matter.
“We are very disappointed that New York Attorney General Eric Schneiderman took such hasty action today, particularly since he did not take any time to understand our business or why daily fantasy sports are clearly a game of skill,” DraftKings said in a statement. “We strongly disagree with the reasoning in his opinion and will examine and 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.”
The two companies have deals with professional teams, and have seen their popularity soar in recent months. While there is obviously concern that comes with gambling and fantasy sports, such as the financial and emotional aspect it carries, residents should be able to spend their money any way they want. Like many things, there is risk involved, but there is also the chance for reward, and freedom.
Residents should have the opportunity to do what they want with their income. While Schneiderman claims these companies can be harmful in many ways, it should be the person’s responsibility to control themselves in a sense that these industries are more enjoyable, than stressful.
FanDuel and DraftKings will use every measure to try to stay available in the state of New York, and the legal system will play itself out. FanDuel CEO, Nigel Eccles mentioned that 58 percent of customers who played in a football game this year won at least once, disagreeing with the notion that everyday players can’t win. The whole debate of skill vs. luck is irrelevant, it should be up to the individual to do what they want in this situation.