Suspension applies while law clarified

FanDuel stops taking payments in New York

Lesley Eccles 8FanDuel and Draftkings, the leading players in the fantasy sports industry, will stop taking bets in New York state, the second-largest market for daily games.

The suspension will apply while issues over the legality of the games is resolved.

They were last year issued with a “cease and desist” order by New York attorney-general Eric Schneiderman who believes they contravene US online gambling laws.

In a statement, he said: “As I’ve said from the start, my job is to enforce the law and, starting today, DraftKings and FanDuel will abide by it.

“Today’s agreement also creates an expedited path to resolve this litigation should that law change or upon a decision by the appellate division.”

FanDuel responded, saying: “New York is a critical state for FanDuel . . . We are proud to be one of New York’s largest start-up companies and, while it is disheartening for us to restrict access to paid contests in our home state, we believe this is in the best interest of our company, the fantasy industry and our players while we continue to pursue legal clarity in New York.”

The agreement will mean Mr Schneiderman withholding his lawsuits. The companies’ appeal over an injunction which prevents them operating in the state will not be heard until September.

Last month, FanDuel co-founder Lesley Eccles (pictured) told Daily Business she believed the company would emerge stronger once the issue was resolved.

Several states, including Texas, Hawaii, Illinois and Washington, have issued prohibition orders, while Virginia was the first to reach an agreement allowing the firms to operate. The companies have resolved to negotiate on a state-by-state basis in a bid to provide consumer protection.

The Virginia agreement involves a $50,000 registration fee for the companies and age restrictions on players. Employees and their relatives cannot play in any contests – a move which followed the ‘insider dealing’ row last year. Site operators need to keep player and operational funds separate in addition to keeping data secure.

Leave a Reply

Your email address will not be published. Required fields are marked as *

This site uses Akismet to reduce spam. Learn how your comment data is processed.