How other states are cracking down on illegal gambling
Some attorneys general have been clear in declaring: Daily fantasy sports is gambling.
NEW YORK
State action: Attorney General Eric Schneiderman issued an opinion in November that FanDuel and DraftKings were engaged in “illegal gambling” and ordered them to stop accepting bets in the state. He also has demanded that they refund players who lost money — a sum that could exceed $4 billion with fines.
Reaction: After an initial court ruling agreed with the attorney general, appellate judges within the state’s Supreme Court in Manhattan decided to grant the companies a “permanent stay” to keep operating in New York until their appeal runs it course.
Status: The two companies remain active in New York, which accounts for about 10 percent of their business.
NEVADA
State action: In October, Attorney General Adam Laxalt ruled that pay-to-play daily fantasy sports is a form of “sports pools and gambling games” that requires a gambling license.
Reaction: FanDuel, DraftKings and other sites immediately halted business in Nevada. They could have faced felony fines and up to 10 years in prison for operating an illegal gambling site.
Status: Gov. Brian Sandoval recently called on state regulators to come up with a way to set a national model for assuring the integrity of online fantasy sports sites.
ILLINOIS
State Action: Attorney General Lisa Madigan responded to legislators’ request for legal clarification by asserting that “all games of chance or skill, when played for money, are illegal gambling in Illinois.”
Reaction: The online sites ceased taking Illinois bets after that December ruling.
Status: The state’s General Assembly is considering legislation to regulate fantasy sports sites.