DraftKings CEO Jason Robins said in May that his company may not fully comply with federal anti-gambling laws, according to notes of a conference call obtained by ESPN.com.
The minutes of the call describe Robins acknowledging that daily fantasy games offered for golf and auto racing don’t strictly abide by the guidelines of the Unlawful Internet Gambling Enforcement Act of 2006. Daily fantasy sports companies have argued that they are legal under UIGEA because of an exception for games of skill.
“Jason acknowledged that Golf and NASCAR do not comply with the letter of the UIGEA, but argued that UIGEA was written when daily fantasy didn't exist,” the minutes of the call said, according to ESPN. Robins then explained why he believed golf and NASCAR would comply by UIGEA if the law was written with daily fantasy in mind.
The call was conducted with members of the Fantasy Sports Trade Association.
In a statement to ESPN, DraftKings said Robins’s comments had been misrepresented.
“The purported FSTA board minutes are not a verbatim transcript, but rather the interpretation of a lengthy meeting by one non-lawyer reflecting what another non-lawyer said about a complex law,” the statement read.
DraftKings and its main competitor, FanDuel, have been subjected to significant legal scrutiny in recent weeks. New York’s attorney general sent cease-and-desist letters to the companies last week and the Massachusetts attorney general has also proposed regulations on daily fantasy. Nevada’s Gaming Control Board has ruled that daily fantasy constitutes gambling.
- Dan Gartland