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New York Says Daily Fantasy Sports Sites Are Illegal Gambling Under State Law

New York state's attorney general has ordered the two biggest daily fantasy sports companies to stop accepting bets there. He says those games constitute illegal gambling under state law.

In making the announcement, New York Attorney General Eric Schneiderman says the games "cause the same kinds of social and economic harm as other forms of illegal gambling" and mislead consumers:

"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."

The order will ban FanDuel and DraftKings, the two biggest daily fantasy sports companies, from accepting bets in New York, though both companies will have a chance to challenge the decision in court.

FanDuel and DraftKings contend that their games are not gambling but rather games of skill. Their popularity has skyrocketed in recent months, leading both companies to be valued at over $1 billion.

A spokesman for DraftKings said the company will fight the ruling.

Copyright 2021 NPR. To see more, visit https://www.npr.org.

Nathan Rott is a correspondent on NPR's National Desk, where he focuses on environment issues and the American West.