It begins...
New York attorney general Eric Schneiderman orders DraftKings, FanDuel to shut down in state
NEW YORK DAILY NEWS
Tuesday, November 10, 2015, 6:28 PM
SCOTT OLSON/GETTY IMAGES
Fantasy sports website FanDuel, along with rival DraftKings, is ordered shut down in New York after attorney general Eric Schneiderman calls both companies illegal gambling sites.
Looks like fantasy websites just got a reality check in New York state.
Attorney general Eric Schneiderman says says DraftKings and FanDuel must cease operating in the state because it is gambling and illegal.
Last month the Nevada Gaming Control Board banned the websites from operating in the Silver State. Operators violating the order face felony fines and 10 years in prison.
Entry fees on DraftKings range from 25 cents to more than $5,000. Some prizes top $1 million.
DraftKings and FanDuel say the sites provide games of skill and not of chance and are therefore protected by the Unlawful Internet Gambling Enforcement Act established in 2006, which has language protecting fantasy sports.
The games are legal in 45 states.
At issue is whether DraftKings and FanDuel — which charge customers an entry fee to draft fantasy sports teams to compete against other customers’ fantasy squads for a chance at big prize money — have violated federal laws in any way. The DOJ and FBI probe, which was first reported by the Wall Street Journal, is looking into the business model of these companies. FBI agents from the Boston field office are also talking with DraftKings customers to inquire about their experiences with the company, according to the Wall Street Journal report.
In 2006, the Unlawful Internet Gambling Enforcement Act was passed to regulate online gambling, but the legislation excluded fantasy sports because they were deemed skill games.
— With News Wire Services