By: Anthony Barrett
Two of the largest fantasy sports operators are fighting for their lives.
Louisiana, Iowa, Arizona, Montana, Nevada, and Washington have all banned DraftKings and FanDuel. More states are starting to follow their lead.
DraftKings and FanDuel are fantasy sports websites in which players can bet weekly on the performances of individual sports players rather than creating a whole team at the beginning of a season.
On November 11th, 2015, New York Attorney General Eric Schneiderman sent letters to both DraftKings and FanDuel demanding to stop accepting payment from New Yorkers. Schneiderman considers the websites illegal gambling, and he threatened to take legal action against the companies if they don’t stop.
Schneiderman described the companies as, “Leaders of a massive, multibillion-dollar scheme intended to evade the law and fleece sports fans across the country.”
Both DraftKings and FanDuel have described their businesses as “a game of skill” rather than gambling.
Two days later, both FanDuel and DraftKings sued Schneiderman.
The two websites requested a restraining order against Shneiderman this week in attempt to hold off any further legal action until the first court date, but New York Supreme Court Justice Manuel Mendez denied.
The two companies also asked the courts to provide them with the means to continue their business elsewhere while the legal battle ensues.
While the legal battle ensues, Schneiderman suggested that all New York players stop playing.
However, his suggestion may not matter.
Internet users all over the United States have access to a service called a “Proxy Server” whose main purpose is to mask the true location of any given computer. The service is provided for just a few dollars a month, and it is extremely effective. It has the power to give a player playing in New York the appearance of playing from anywhere else around the world.
Fantasy Sports are essentially unregulated by laws, and it is unclear whether companies have an obligation to block Proxy Servers.
The first court hearing on the matter is scheduled for November 25th, 2015.
DraftKings attorney Josh Shiller told ESPN, “Daily fantasy sports are not an illegal gambling operation, and there’s no credibility to the argument that season-long fantasy could be legal while daily fantasy isn’t. Daily fantasy requires more skill and less chance.”
