Group Contemplates Lawsuit Over Fantasy Sports in New York

Written by:
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Published on:
Aug/17/2016
  • Stop Predatory Gambling group claims Daily Fantasy Sports companies still cheating customers
  • State circumvented constitutional requirements to ensure this issue appeared on statewide ballot, group’s director stated
  • Assemblyman who sponsored bill insists that measure will stand up to any challenge as DFS is now considered a “game of skill” as opposed to gambling
  • Daily Fantasy Sports powerhouses DraftKings and FanDuel are currently seeking permits to once again operate in the state

With passage of legislation that will now permit Daily Fantasy Sports in the state of New York under more stringent licensing guidelines, an anti-online gambling group has contemplated a lawsuit to try to prevent such companies from gaining access to the market.

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Stop Predatory Gambling, which claims Daily Fantasy Sports companies continue to cheat customers despite a regulatory framework, is urging New York to overturn the decision.   

"This is the ultimate tool to cheat and exploit citizens," said the organization's executive director Les Bernal.

He also claims the state failed to let voters determine the fate of Daily Fantasy Sports.

"The state legislature circumvented a state constitution requirement that requires all gambling issues to go for a constitutional convention and actually appear on the statewide ballot," Bernal said.

The lawmaker who sponsored the bill in the assembly, John Bonacic, says, "this legislation authorizes fantasy sports as a game of skill, and as such would stand up to any legal challenge."

The two DFS giants, FanDuel and DraftKings, are in the midst of seeking permits to operate in the state ahead of this year’s lucrative NFL season.

Last fall, as the NFL was underway, New York Attorney General Eric Schneiderman ordered both companies to stop doing business in the Empire State.

Ultimately both companies complied but filed suit.

Schneiderman issued this statement at the time:

“I’m pleased to announce that both FanDuel and DraftKings will stop taking bets in New York State, consistent with New York State law and the cease-and-desist orders my office issued at the outset of this matter. As I've said from the start, my job is to enforce the  law, and starting today, DraftKings and FanDuel will abide by it.  Today's agreement also creates an expedited path to resolve this litigation should that law change or upon a decision by the appellate division.  Regardless, our key claims against the companies for false advertising and consumer fraud are not affected by the agreement and will continue.”

- Aaron Goldstein, Gambling911.com

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