FanDuel and DraftKings to exit New York
Daily fantasy sports operators reach settlement with state Attorney General Eric SchneidermanÂ
FanDuel and DraftKings will exit the state of New York after reaching an agreement with Attorney General Eric Schneiderman. [private]
The settlement will see both daily fantasy sports (DFS) operators withdraw from the market until September, pending legislation that would allow them to do otherwise.
September marks the month when the case on whether daily fantasy sports is legal in the state is set to be heard, although a firm date has yet to be set.
The agreement will also see Schneiderman hold off on pursuing litigation against both operators, which was to seek restitution for players who have lost money on both sites.
FanDuel, which is headquartered in Manhattan, said the state was âcriticalâ for the operator and that it was âdishearteningâ to have to withdraw its paid contests.
âWe 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,â the firm said in a statement.
Rival DraftKings said it was an industry leader in tech, innovation and consumer protection, and thanked the âhundreds of thousandsâ of New Yorkers who played on its site.
âWe will continue to work with state lawmakers to enact fantasy sports legislation so that New Yorkers can play the fantasy games they love,â the firm added.
There are a number of DFS bills in play in New York, with S6793 introduced by Senator John Bonacic thought the most likely to gain traction in the coming months.
The agreement brings to a head months of legal wranglings between FanDuel, DraftKings and Schneiderman, who ruled DFS met the definition of illegal gambling last year.