Same day fantasy football betting sites Fan Duel and Draft Kings were shut down in the state of New York on November 10th after the Attorney General determined that they were illegal gambling enterprises.
“Our investigation has found that, unlike traditional fantasy sports, daily fantasy sports companies are engaged in illegal gambling under New York law, causing the same kinds of social and economic harms as other forms of illegal gambling, and misleading New York consumers,” Schneiderman’s office said in a statement.
The Attorney Generals office determined that “Daily fantasy sports is neither victimless nor harmless, and it is clear that DraftKings and FanDuel are the leaders of a massive, multi-billion-dollar scheme intended to evade the law and fleece sports fans across the country.”
The sites claim that fantasy draft is a game of skill rather than a game of chance, and thus not gambling, which is protected by the Unlawful Internet Gambling Enforcement Act established in 2006, which has language protecting fantasy sports.
The state of Nevada has also ruled that the two company’s activities are indeed gambling. The Department of Justice and FBI are looking into the business models of both companies.