Fantasy Sports Sites Won't Take Bets from New Yorkers

Online fantasy sports betting is off-limits for New Yorkers, as three fantasy sports betting websites have agreed not to take bets from state residents.

Attorney General Eric T. Schneiderman began targeting two of the biggest, FanDuel and DraftKings in 2015, saying New York has long-standing prohibitions against sports wagering.

DraftKings and FanDuel settled part of the issue with the state Monday, by agreeing to not take bets in New York.

And Tuesday, Yahoo Daily Fantasy Sports has voluntarily followed suit, according to the AG.

Schneiderman issued the following statement:

Following yesterday’s announcement that FanDuel and DraftKings will follow the law and stop taking bets in New York State, Yahoo has now informed my office that it will do the same. New York law has long prohibited sports wagering, including betting on daily fantasy sports. As long as that’s the case, I will continue to enforce the law vigorously, and I am glad these companies have agreed to follow it.

DraftKings and FanDuel are the two largest sites in the country in the the multibillion-dollar daily fantasy sports industry.

Both companies contend that their games are skill-based and not chance or luck-based. On both sites, participants create teams using real sports players and compete against other participants by using the game statistics of the pro athletes. Bettors on both sites can play for prize money or bragging rights.

It's a nationwide issue. Nevada’s gaming commission deemed both sites were gambling operations, essentially forcing them out of the state. They were declared illegal in Illinois in January after a review by their attorney general, Lisa Madigan. But Rhode Island decided differently.

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Monday's agreement with the two companies in Schneiderman's sights does create an expedited path to resolve the litigation that they're embroiled in in New York -- should that law change or upon a decision by the appellate division, Schneiderman said. "Regardless, our key claims against the companies for false advertising and consumer fraud are not affected by the agreement and will continue.”

Their advertising is seen and heard countless times during sporting and other events on television and radio. Both have forged deals with sports leagues and broadcasters, like ESPN.

The two companies had filed separate lawsuits against the AG. In November, FanDuel, which is based in New York, issued a statement that said in part:

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, co-workers and players across the country.