Wednesday November 11th, 2015

FanDuel says contests on its site will run as scheduled this weekend after New York attorney general Eric Schneiderman sent DraftKings and FanDuel cease and desist letters on Tuesday.

FanDuel issued the following statement on its website on Wednesday:

“This weekend’s contests will run as normal, with no restrictions for NY users to play. FanDuel received a letter from the NYAG’s but no action is immediately required. We will alert NY users immediately if there is any changes to your ability to enjoy playing FanDuel. We believe the AG’s interpretation of the law is wrong and that he has mischaracterized our customers and our business. Please reach out to our customer service team if you have questions.”

MCCANN: Examining the implications of New York’s severe blow to DFS companies

Schneiderman on Tuesday that he believes the gambling on these daily fantasy sites should be considered illegal, according to The New York Times. New York is following Nevada’s lead after the state’s Gaming Control Board classified the sites as participating in sports gambling and ordered them to stop operating.

“It is clear that DraftKings and FanDuel are the leaders of a massive, multibillion-dollar scheme intended to evade the law and fleece sports fans across the country,” Schneiderman said. “Today we have sent a clear message: not in New York, and not on my watch.”

Last month, the New York Times reported that daily fantasy employees had taken advantage of insider information to win large jackpots on rival sites, including one DraftKings employee who won $350,000 from a $25 bet on FanDuel. Both sites issued a joint statement saying there was no evidence their employees had taken advantage of privileged information but later permanently barred their employees from participating in daily fantasy contests.

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