INDUSTRY FORUM

Woke up to this unfortunate gem: http://www.legalsportsreport.com/9130/fanduel-draftkings-reach-ny-settlement

Thoughts with you guys in New York.

Statement from FanDuel

FanDuel made the following statement via a company spokesperson:
“We are announcing that as of today, FanDuel will cease offering paid contests in the state of New York per the terms of a settlement reached with the Attorney General on certain aspects of the ongoing litigation.

New York is a critical state for FanDuel. FanDuel is headquartered in Manhattan, where we employ more than 170 young smart, passionate fans who are committed to innovating and providing the best fantasy experience possible. We are proud to be one of New York’s largest startup companies, and while it is disheartening for us to restrict access to paid contests in our home state, we believe this is in the best interest of our company, the fantasy industry and our players while we continue to pursue legal clarity in New York.”

Statement from DraftKings:

DraftKings Statement Regarding The Settlement with The New York Attorney General

“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.

We are an industry leader in technology, innovation and consumer protections, and we are grateful to the hundreds of thousands of New Yorkers who have enjoyed playing fantasy sports on DraftKings for the last 4 years. We will continue to work with state lawmakers to enact fantasy sports legislation so that New Yorkers can play the fantasy games they love.”

MODERATION NOTE: Now more than ever, we all need our voice to be heard. Make Your Voice heard here. Please stay on topic in this thread, we understand people are mad and/or frustrated.

It’s not clear to me why someone who has to be elected, is perceived in a negative light for doing things that have a public relations angle. If he’s doing ‘publicity stunts’ at the expense of the law, then I can understand looking at him unfavorably. If he’s doing ‘publicity stunts’ while pursuing the law, well, gamers gonna game.
Show me the argument of, this litigation cost x $. It was pursued instead of cases y and z, they were known to be a more important/relevant to NY as a whole and were left by the wayside so AG could pursue pet cases AG thought would make himself look good.

Agreed (I think the casino stuff is only a few hundred thousand in total) – and re-reading what I wrote I can see that it looks like I was implying he was on the take.

I intended it more as him being a hypocrite politician (redundant?) and I am in full agreement he is grandstanding for higher office, as all NY AGs before him have (Eliot Spitzer at least went after legitimate things which actually positively impacted the state or greater).

Apologies if what I wrote was poorly written to imply graft – agreed it would likely be more if so.

Just got this from DK support. Clarifies things.

Hi Max,

Thanks for contacting us today. I can answer your questions in the order they were asked;

1) All of your tickets have been converted to cash, currently there are no tickets available in your account.

2) If you are physically located in New York, you will not be eligible to enter paid contests. If you are physically within a state which permits paid contests, you may enter.

3) While you are physically located in New York you will not have the ability to access any platform (app or website), you will not be able to connect.

Not on my watch!

is it worth it for me to drive across the Tappen Zee into Paramus to put the $1.40 per gallon gas and enter a team while I wait for the man to put gas in my tank.

Slow down there…big IF with that being IF FD/DK win their case in September(they probably won’t) then they will come back OR IF DFS legislation is passed in before the end of summer(probably will) then they can come back in Sept.

Need 1 of those 2 things to happen or DFS is gone from NY a lot longer than September.

If they legalize they can resume July 1st.
From the agreement:
In the event of Daily Fantasy Sports Authorization, DraftKings
may resume offering Paid Contests to customers physically located
in New York on the later of the effective date of such Daily
Fantasy Sports Authorization or July 1, 2016. Thereafter,
DraftKings shall offer such Paid Contests to customers located in
New York only to the extent permitted by the Daily Fantasy Sports
Authorization.

I’m in NY and still have ability to enter DK contests?

It may be smart for people in New York to move over to yahoo….they are a large company and the larger there dfs presence the move willing they will be to fully join the fight instead of bowing out when it gets ugly. Could be totally off but seems like a somewhat solid strategy

Well, this fn sucks. Live in NY, work in the tristate area. I was in CT, tried to deposit, no good. Pop up came up says my state would not allow me to deposit and play.

Did u restart your device ?
Or will it not allow u to play no matter if your outside of the state

Yes, geo tracker stated I was in CT, played a free contest, it worked. I tried to deposit, no good.

MURRAY: LEGISLATURE NEEDS TO ACT NOW ON DAILY FANTASY
https://twitter.com/DeanMurrayNYAD3/status/711997091158102016

This seems like a massive bullshit hoodwinked action that we should of saw coming. It was too quiet on all sides. How long too draft this bill and come to terms from all parties? Where is the uproar from those in the past? There is hardly none because the sites lawyers signed this agreement. U telling me no one knew this was coming? The owners of the sites, to the people who run/own dfs websites such as this and fanatasy labs ect ect ect. Lotto, 40 percent rake, no thank you.

how about if u have money in your account and go into CT would i be able to enter a contest? does it say if your from new york when u press confirm

I don’t think that’s a line of argument that it’s wise to pursue. That would only happen as part (b) of forcing everyone that won to disgorge their profits and I see no reason to put that thought in any politician or AG’s mind.

Trying to do so now. I feel overwhelmed.

That might work, hope someone else can verify that, didnt do well this weekend, figure deposit on Monday and start the week fresh. NOT

Think about the prior stands both FD & DK have taken in the past in NY. Why would both agree now, on the same day, to suspend operations in NY if there wasn’t an under the table handshake agreement in place/some understanding of how the potential legislation would go?

They give Schneiderman his public win, go away for a long enough time that allows the AG to pound his chest, and return in time to hit their upseason.

Fair point, just know that Yahoo has 0 credibility when it comes to their player pool…..

A player might not be in the pool late nite or early morning and then once they figured out they goofed…they will add said missing player(s) in and not let you know.

So, unless you happened to go back and check (as you wondered why said A, B, C player wasn’t available to begin with) — make sure you check back a few hours b4 lock, b/c ODDS ARE they added them in.

This doesn’t bode well for us in Texas. FD is already shutting down paid games in May. I guess I will have to go back to options trading – which is sort of like gambling but costs more – sigh…………..

I think you are right, look what I just found:
“In the meantime, the state Legislature is considering a measure that would regulate the industry under the state Department of Financial Services. The state Senate quietly included the measure in its one-house budget Monday.”
“The companies are lobbying the state to approve the law to let them continue, but it’s unclear whether the Legislature will take up a bill before session ends in mid-June.”
In the agreement it states that if a law is passed before the Legislature goes to recess in June, games can start up again July 1.
http://www.lohud.com/story/news/politics/politics-on-the-hudson/2016/03/15/senate-pushes-regulate-daily-fantasy-sports/81820318/

still cant believe they couldnt hold off with these upcoming nba tourneys and the milly golf coming up cmon man

That’s a possibility, though Schneiderman’s not in a position to make any promises regarding legislation.

What he does control is the course of the litigation. The first thought that came to my mind was that if the companies ever felt their legal position had deteriorated to the point that there was a real possibility a judge might agree to the state’s demand that they “return” all money lost by customers in New York, they’d probably deal. They don’t have that money—all but the rake was paid out as winnings to other customers. If that hammer ever came down I suspect it would put both companies out of business for good, everywhere. Worse, a finding of wrongdoing might pierce the corporate veil and the owners’ finances might be at risk too.

I don’t know what legal advice they’re getting but if it were me, my inclination would be to take my chances on the legislative front and do what I needed to do to avoid the worst on the litigation side.

Coming from someone with the nick “Bighouse” I’d listen to your accountant.

I’d say if your address is in New York and you circumvent the system, you may be opening yourself up to unwanted government attention should you actually win. Will it be from the IRS, local (NY A.G. etc…) or Federal? Who knows…………or as someone else pointed out, they (FD/DK) may go to double check if you do win, see the NY address and tell you to go _______ yourself.

I wouldn’t chance it.