This week the New York Attorney General Eric T. Schneiderman has announced that he has served a cease and desist order to operators of Daily Fantasy Sports companies, demanding they cease operations in the Empire State.
The orders have already been served on the two major players in the DFS industry, DraftKings and FanDuel. The Attorney General conducted a lengthy investigation into the companies and concluded that they constitute illegal sports gambling, and has demanded that they cease operation in his state.
In a press conference regarding the issue Schneiderman said, "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. Today we have sent a clear message: not in New York, and not on my watch."
Naturally FanDuel and DraftKings feel that their operations are legal, and they have issued a response to the cease and desist order. A FanDuel statement on the matter read:
"Response to New York Attorney General's Letter
The New York Attorney General has sent a letter asking for daily fantasy operators, like FanDuel, to cease and desist operations in the State of New York.
"Fantasy sports is a game of skill and legal under New York State law. This is a politician telling hundreds of thousands of New Yorkers they are not allowed to play a game they love and share with friends, family, coworkers and players across the country.
"The game has been played - legally - in New York for years and years, but after the Attorney General realized he could now get himself some press coverage, he decided a game that has been around for a long, long time is suddenly now not legal. We have operated openly and lawfully in New York for several years. The only thing that changed today is the Attorney General's mind."
DraftKings Spokeswoman Sabrina Macias also commented on the issue, noting: "We're disappointed he [Schneiderman] hasn't taken the time to meet with us or ask any questions about our business model before his opinion," an account attorney general spokesperson Eric Soufer disputes saying there were multiple meetings between the A.G.'s office and DraftKings."