Daily Fantasy Sports shutted down in New York

FanDuel and DraftKings accepted a settlement to quit doing business in New York as they wait for a resolution via new legislation on DFS.

US.- FanDuel and DraftKings decided to accept a settlement agreeing to stop operations in New York, whilst being exempted from paying fines or penalties related to online gambling charges.

In the meantime, the top daily fantasy sports operators will wait and hope for a legislation change to make DFS legal after a long fight with the state’s attorney general. Eric Schneiderman, NY Attorney General announced that the companies agreed to immediately stop operating paid contests in the New York, whilst an appeal of an injunction against the two companies is slated to be heard by the state’s Appellate Division in September. “This is a decisive and important victory for the rule of law in New York state,” said Schneiderman. “No company or individual no matter how powerful or well financed is above the law.”

Under the settlement, in the event of daily fantasy sports being legalised in New York this year, the gambling claims against the companies will be dropped, although the companies could still face charges for false advertising or consumer protection issues. On the other hand, there have been bills proposed in New York’s state legislature to make the games legal, one of which was recently attached to the state budget, which means the matter may be considered as early as this week.

DraftKings declared it would continue to work with state lawmakers in an effort to enact legislation to ensure the games are deemed legal. On its part, FanDuel released a statement that reads: “New York is a critical state for FanDuel. 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.”