Attorneys for FanDuel and DraftKings argued in New York State Supreme Court on Wednesday against an injunction requested by the NY Atty. Gen. (NYAG) which would bar them from accepting deposits before the AG’s case against them is settled at trial.
By all accounts, lawyers for the two leading DFS sites earned their keep today and gave Judge Manuel Mendez much to think about before making his decision sometime in the next few weeks.
AG Eric Schneiderman, who earlier this month ordered that daily fantasy sites close up shop in the state, has characterized the DFS industry as corrupt, reckless and illegal, and claims to be protecting consumers from what he views as a vast criminal conspiracy.Streaming and download Doctor Strange (2016)
In his letter to the press announcing the move, he stated that “daily fantasy sports is neither victimless nor harmless, and 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.”
But FanDuel has taken issue with the claim that DFS contests are filled with problem gamblers who have no control of their spending. In fact, in a recent court filing, the NYC-based company says that only 172 New York players have lost more than $10,000 in the site’s contests this year, with just 16 losing more than $50,000.
DFS vs casino games
Due to the nature of the game, DFS contests are not as attractive to those seeking fast action, as compared with luck-based games like blackjack or craps, FanDuel argues.
Indeed, while casino games can be over in a matter of seconds, DFS players need to first study lineups, draft their teams, then wait for all of the games on the slate to finish before finding out if they have placed in the money. Surely the many house-banked games offered at New York’s some 20 casinos are more conducive to creating reckless bettors.
New York players make up around 10% of both FanDuel and DraftKings’ user base. A negative outcome for DFS in the Schneiderman case would be a big blow to the industry, but not necessarily a fatal one.