New York State Attorney General Eric Schneiderman "has expanded his investigation into daily fantasy sport sites, with measures including the issuance of a subpoena" to Yahoo, according to a source cited by Joe Drape of the N.Y. TIMES. Schneiderman yesterday "sought an injunction in state court" to prohibit FanDuel and DraftKings "from operating in the state." Yahoo, which expanded from season-long fantasy sports into daily games in July, on its site said that it "was continuing to take bets from New York users." DFS analytics outfit SuperLobby said that Yahoo "has established itself the clear No. 3 option behind FanDuel and DraftKings in terms of participation" (N.Y. TIMES, 11/17). TECH CRUNCH's Fitz Tepper noted Yahoo "has avoided the flashy prime-time ads that are now common in the industry," but the company "has actually offered year-long fantasy leagues with cash prizes since before DraftKings and FanDuel were even founded" (TECHCRUNCH.com, 11/17).
HOW THE STATES WERE MADE: In N.Y., Marsh & Perez report FanDuel "has temporarily halted taking entries in paid contests from New Yorkers" following Schneiderman's decision yesterday "to slap the fantasy sports operator with a lawsuit." FanDuel said that the suspension "is expected to be temporary and all users in the Empire State 'can and will absolutely' be able to withdraw their money at any time." FanDuel yesterday in a statement said, "We believe we will have an update from the Court in 10 days" (N.Y. POST, 11/18). In Syracuse, Teri Weaver noted two lawmakers this week "announced new legislation to clarify New York law to allow" DFS companies "to operate in the state." However, it is "unlikely the lawmakers would take action before next year, when they return to Albany for the next legislative session" (SYRACUSE.com, 11/17). Meanwhile, in Boston, Graham & Villani report DraftKings "has vowed to keep operating in New York," even as FanDuel has stopped taking entries in the state. Massachusetts AG Maura Healey’s office yesterday "declined to comment on the New York case." Massachusetts Senate President Stanley Rosenberg said that he believes DFS leagues "are forms of gambling, not games of skill as Gov. Charlie Baker asserted last week." Rosenberg said that he "hopes to have a legislative solution by the end of the session in July" (BOSTON HERALD, 11/18). The AP reports the South Dakota Commission on Gaming today is "reviewing daily fantasy sports betting." South Dakota AG Marty Jackley said that he will "await potential guidance from the commission before deciding whether to take any action" (AP, 11/18).
CAN WE STOP THE CHARADE! In Chicago, Barry Rozner writes almost any gambler "will tell you that daily fantasy games are absolutely gambling, filled with professionals and amateurs, the former consistently taking money from latter, who is mostly in it for the entertainment value." Daily fantasy "is gambling and it should be legal and regulated, just like sports betting in Vegas -- and just like it should be around the country." It is legal "just about everywhere else in the Western world and no one pretends otherwise" (Chicago DAILY HERALD, 11/18). In Las Vegas, Howard Stutz notes poker "is often described as a game of skill," and blackjack "requires some skill-based elements." However, the outcomes are "ultimately determined by the luck of the draw." Stutz: "The same is true with daily fantasy sports. You can research a quality NFL lineup, but you can't account for Green Bay's Eddie Lacy blowing out his hamstring on the Packers' opening drive" (LAS VEGAS REVIEW-JOURNAL, 11/18).
EDITORIALLY SPEAKING: An Albany TIMES UNION editorial states, "Let's call the fantasy sports phenomenon for what it is: gambling." The reality is that this "is an unregulated industry operating on a mix of skill and chance, with more than a billion dollars flowing through it last year, a figure that's growing annually." The situation "is ripe for abuse." The editorial: "If you bet, you're gambling." Some skill "may be involved, but it's no different, fundamentally, from horse racing" (Albany TIMES UNION, 11/18). A READING EAGLE editorial states there is "no doubt that players who do more research and have a greater understanding of, say the NFL, have a better opportunity to draft athletes who will produce more fantasy points, thus providing a greater return on an entry fee." But "doesn't the same hold true of horse racing, which clearly falls under the gambling category?" One of the "main reasons that Pennsylvania lawmakers should consider sports fantasy leagues as a form of gambling is that it would give them an opportunity to tax an industry that is expected to collect" $2.6B in entry fees this year and as much as $14.4B by '20, according to data from Eilers Research (READING EAGLE, 11/18).
