The cease-and-desist order from New York attorney general Eric Schneiderman to leading daily fantasy sports sites DraftKings and FanDuel marks a significant escalation of the broader tension between government and DFS operators.
DFS sites have a major footprint with pro sports franchises in New York, as either DraftKings or FanDuel has sponsorship deals with most of the professional franchises in the state.
DraftKings also has a deal with Madison Square Garden, with a fantasy sports lounge inside; Draft Ops has a similar deal with Barclays Center in Brooklyn. While DraftKings and FanDuel may have sufficient motivation to challenge the AG’s order, it’s unclear if their partners will utilize the same risk calculus.
As part of the settlements, DraftKings and FanDuel will stop allowing players to enter contests effective today. That will stay in place until the outcome of appeals court hearing in September.
With the DFS question effectively on hiatus on the court side, attention now turns to the New York legislature.
Today’s settlements have a wide range of impacts for DraftKings, FanDuel, and the daily fantasy sports sites.
Effective today, as part of a settlement reached with the Attorney General’s office, DraftKings will stop offering paid daily fantasy sports contests in New York State.