New York Atty. Gen. Eric Schneiderman stunned the DFS community last week when he issued a ruling that daily fantasy sites DraftKings and FanDuel are breaking state law and must cease operations immediately.
Mischaracterization of DFS
In his statement to the press, Schneiderman’s lack of an even basic understanding of the industry was on full display. The AG spoke as if he had uncovered a vast underground criminal conspiracy, claiming that DraftKings and FanDuel were part of a “massive, multibillion-dollar scheme intended to evade the law and fleece sports fans across the country.”
But what could be behind Schneiderman’s seemingly rash decision to eradicate the industry in the state? For its part, FanDuel responded angrily, accusing the AG of using DFS as an excuse to promote himself in the ensuing headlines.Roblox HackBigo Live Beans HackYUGIOH DUEL LINKS HACKPokemon Duel HackRoblox HackPixel Gun 3d HackGrowtopia HackClash Royale Hackmy cafe recipes stories hackMobile Legends HackMobile Strike Hack
Casino interests donate
The New York Post (NYP) suggests, however, that Schneiderman may be simply doing the bidding of one of his substantial campaign donors – New York brick-and-mortar casinos.
The NYP claims that, in total, the AG has received some $150,000 in donations from casino interests since 2010. Gaming giant Genting Resorts World – who has counted the AG’s ex-wife Jennifer Cunningham as a consultant – gave Schneiderman $40,000 between 2011 and 2014.
The New York Gaming Association, which represents Genting’s New York casinos and several racinos across the state, pumped $48,350 into Schneiderman’s attorney general campaigns. Saratoga Racing Casino and Racetrack Gaming Resource contributed $9,500 of its own.
Also included in the list of donors are Genting lobbyists Brian Mearer and Patricia Lynch, who gave $5,500 and $500 respectively.
Andrew and Forbes, a firm which supplies electronic machines used for gambling and state lottery operations, saw fit to fund the AG’s campaign with $25,000.
Land-based casinos fear online gambling
Brick-and-mortar casinos feel as though they are in a struggle with daily fantasy sites for the attention of state gamblers. Sheldon Adelson, whose casinos have made him one of the world’s richest men, holds a similar view about online gaming. The tycoon has waged an all-out war against online poker in the US, claiming that he is only trying to protect society’s vulnerable citizens from ruining their lives through gambling online.
Opponents of Adelson’s anti-iGaming campaign push say that it is nothing more than a cynical ploy to edge out what he sees as competition to his land-based casinos.
Yet research on New Jersey’s burgeoning legal online gambling market has shown that gamblers who play online do not cannibalize revenues of brick-and-mortar casinos, rather, they make up an entirely different subset of the population.
After the AG’s ruling, several lawmakers have come to the aid of DraftKings and FanDuel, including New Jersey Gov. Chris Christie and former New Mexico Governor Gary Johnson.
For their part, DraftKings and FanDuel have sued the NY Atty. Gen. and filed a preliminary injunction to block Schneiderman from shutting down DFS in the state.