New York State Says Goodbye to DraftKings & FanDuel

After much speculation and rumors and after a long battle in court the state of New York has won their court case against online daily fantasy sports sites like DraftKings and FanDuel. Both DraftKings and FanDuel will halt paid contests in the state of New York as a part of a deal reached between the sites and the state’s attorney general. No more daily fantasy for many of the people reading this right now, bummer.

New York Attorney general Eric Schneiderman agreed to drop all the claims and charges against the sites minus the claim of false advertising in the agreement. The state of New York believes these sites violated the state’s gambling laws although this injunction is still under appeal at this time.

New York is now the ninth state where the daily sites will no longer offer paid contests because of state gambling laws joining Arizona, Hawaii, Iowa, Louisiana, Mississippi, Montana, Washington and surprisingly Nevada. Texas will become the 10^th state on May, 1 2016 when their own lawsuit against DraftKings and FanDuel comes to an agreement.

FanDuels and DraftKings Still Under Attack

Every day it seems like we hear more and more criticism and litigation against popular daily fantasy sports sites like FanDuels and DraftKings. It all started when the daily fantasy sports leagues dealt with an insider trading bout and has gone downhill from there. It has even gotten to the point now that if you live in the state of New York you cannot participate in the daily fantasy “gambling” that’s going on at these two sites. FanDuels and DraftKings are in hot water and big trouble and now leagues such as Major League Baseball are getting dragged down with them.

Major League Baseball along with the NBA, NHL and MLS were part of a motion that seeks to add them as defendants to a class-action lawsuit filed against these two companies. All told a whopping 51 companies were named in the lawsuit after either having invested into FanDuels and/or DraftKings or facilitated gambling. The lawsuit includes claims for “negligence, breach of contract, unjust enrichment as well as civil RICO and civil conspiracy.”

Other notable companies being listed in the lawsuit are Visa, MasterCard, American Express, J.P. Morgan, Capital One and PayPal.

It’s awfully convenient for MLB to be making money off of, advertising for and partnering with DraftKings and FanDuels in the same season that new Commissioner Rob Manfred meets with Pete Rose about his lifetime ban for betting on baseball… isn’t it?