FanDuel Restricts New York Users from its service

Fantasy sports leagues have been around for years, and were created as a way for people to have fun with sports, while getting an opportunity to win a little bit of money. With the rise of the internet, online fantasy sports leagues have been set up. One of the most popular of these sites is FanDuel. This website allows you to choose your league for the day. You have the option to play against your friends or against opponents across the country. Then, you must pick the players you want, for whichever sporting event you want. The website uses a salary cap format, meaning every player has a price. Players know if they win the night of the sporting event. What seems like a harmless way to make some money has turned into a gambling concern in the state of New York.

New York wants to ban FanDuel and other similar websites

Eric Schneiderman is the attorney general for the state of New York. He has demanded that FanDuel, along with DraftKings (another online sports league), stop accepting money from residents in the state. Schneiderman has decided that these types of fantasy sports sites are considered gambling sites, making them illegal in the state. These fantasy sport sites are a multibillion-dollar business, which they believe to be exempt from New York’s ban of online gambling, which was created in 2006. The reason these companies are exempt is simply because it is a game of skill, rather than chance, which is what gambling is . Schneiderman believes that these websites still contribute to the state’s economic problems, associated with gambling.

New York not the first state to want to prohibit these websites

States such as Arizona, Montana, and Iowa have all restricted the use of FanDuel within their state. Because of the ban in other states, Schneiderman began an investigation of both FanDuel and DraftKings. There had been claims of employees from each company winning hundreds of thousands of dollars. Because of the investigation both companies have put a ban on their employees playing games. FanDuel still claims that their company is completely legal under New York state law, and banning it would not allow New Yorkers the opportunity to play a fun fantasy game that they love. Both FanDuel and DraftKings are under investigation by the Department of Justice and FBI, which might mean the end for both companies. It is unfortunate because the companies have organized sponsorship deals with many different professional sporting teams.

No ruling by New York Supreme Court

As of November 25th, there has been no official ruling on the issue between FanDuel and the state of New York. Supreme Court Judge, Manuel Mendez, said that the decision would be coming soon. By December, we should know a clear ruling as to whether FanDuel can continue services throughout the state of New York, or if it will have to cease and desist. Many people in New York love being a part of the FanDuel community, and it will be hard for many if they can no longer use the popular fantasy league website.

 

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