FanDuel withdraws from New York market
Daily fantasy sports operator no longer taking deposits from players in the state, DraftKings remains liveÂ
Daily fantasy sports (DFS) operator FanDuel has confirmed it is no longer taking deposits from players in New York but will continue to fight the state attorney generalâs ruling that DFS is âillegal gamblingâ. [private]
In a statement issued Friday, FanDuel said it was with âgreat disappointmentâ that it had begun the process of limiting access to players in New York while it âpursues the opportunity to be heard in courtâ.
While the firm said it would no longer accept deposits from New York players, it confirmed they would still be able to withdraw money from their accounts.
eGR North America understands a number of payment companies and banks have stopped processing payments in New York following the attorney generalâs ruling.
FanDuel has filed a lawsuit against the attorney general seeking an injunction against his ruling and also asked the judge to rule that DFS does not constitute gambling under New York law.
The news comes after rival DraftKings filed a lawsuit on Friday against Attorney General Eric Schneiderman, who issued cease and desist letters to both operators last week following an investigation by his office.
In a separate statement, DraftKings said it would not follow FanDuelâs lead and exit the state at this moment in time.
âWe will continue to operate in New York while we pursue all legal options available to prevent the New York Attorney General from denying our customers their right to play the games they love,â it said.
On receipt of the two lawsuits, the attorney generalâs office issued its own statement and said its job was to enforce the law, âand the law here is clearâ.
âBecause both companies have refused to follow the law in our state, we will take action to enforce state law,â the statement added.
For further analysis of what the New York ruling will have on the wider DFS industry click here.