New York sends cease-and-desist notices to DraftKings, FanDuel [View all]
Source: ESPN
New York attorney general Eric Schneiderman declared Tuesday that daily fantasy sports constitutes illegal gambling in his state and sent game operators DraftKings and FanDuel cease-and-desist notices in a significant blow to the embattled billion-dollar industry.
Schneiderman demanded DraftKings and FanDuel, the two industry giants, stop accepting "wagers" from New York residents and discontinue operations in the state.
"Our review concludes that DraftKings'/FanDuel's operations constitute illegal gambling under New York law," Schneiderman wrote in the letter, obtained by ESPN's David Purdum and Darren Rovell, and ABC News.
During their rampant growth, daily fantasy sites have pointed to the Unlawful Internet Gambling Enforcement Act of 2006 in regard to their legality and have claimed they offer games of skill. But Schneiderman found that "each DraftKings/FanDuel wager represents a wager on a 'contest of chance' where winning or losing depends on numerous elements of chance to a 'material degree.'"
Read more: http://espn.go.com/chalk/story/_/id/14100780/newyork-attorney-general-declares-daily-fantasy-sports-gambling
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