Fantasy probe looking at Yahoo
Yahoo, the nation’s thirdlargest daily fantasy sports game operator, has been issued a subpoena by the New York attorney general’s office, according to a person familiar with the matter.
The Sunnyvale tech giant is being added to a larger investigation by Attorney General Eric Schneiderman’s office into the legality of daily fantasy games, which allow users to earn cash in exchange for organizing the best athletes in daily contests. Schneiderman has already taken legal action against Yahoo’s competitors in the space, DraftKings and FanDuel.
Schneiderman’s office argues that daily fantasy sports
games are a form of illegal gambling. The sites “directly profit from the wagering on their platforms,” Schneiderman said in court documents.
“On sites hosting traditional fantasy leagues, most players compete for bragging rights or side wagers, not massive jackpots offered by the sites themselves,” according to a complaint filed by Schneiderman against DraftKings on Tuesday.
Companies and legal experts told The Chronicle in October that daily fantasy is permitted under federal and most state laws. A 2006 federal act legally allows games that base winning on knowledge and skill.
Yahoo said it does not comment on legal matters. “We are monitoring industry trends and events closely and believe that we offer a lawful product for our Daily Fantasy Sports users,” the company said in a statement.