Some Simple Insights Into Easy Sports Industry Strategies

“The payment of an ‘entry fee’ as high as $10,600 on one or more contests daily could certainly be deemed risking ‘something of value.'” The attorney general’s motion had cited New York’s ban on bookmaking and other forms of sports gambling that have stood since 1894. “So-called Daily Fantasy Sports (‘DFS’) wagers fit squarely in both these definitions,” Schneiderman’s memorandum reads per NPR, “though by meeting just one of the two definitions DFS would be considered gambling. DFS is nothing more than a rebranding of sports betting. It is plainly illegal.” DraftKings filed an appeal Friday afternoon, saying Mendez “misapplied the law.” The company had issued a statement earlier stating, “Daily Fantasy Sports contests have been played legally by New Yorkers for the past seven years and we believe this status quo should be maintained while the litigation plays out. FanDuel filed an appeal as well, providing this statement: “This is only the beginning of the legal process and, perhaps more importantly, the New York legislature is already moving forward on action to ensure our game remains legal and is regulated, which we strongly support. The court specifically noted that this was not a final determination of the issue and that discovery would be needed to fully resolve the legal question, which we think should be decided in our favor when all of the evidence is in.” Schneiderman also issued a statement: “We are pleased with the decision, consistent with our view that DraftKings and FanDuel are operating illegal gambling operations in clear violation of New York law. I have said from the beginning that my job is to enforce the law, and that is what happened today.” Along with the injunction, Attorney General Schneiderman also wants DraftKings and FanDuel to terminate their deals with the sport teams within the states. Per Darren Rovell and David Purdum of ESPN, Apron signage for the companies at New York Knicks and Brooklyn Nets games must come off for national games. It’s not clear whether the companies would want their advertising on local broadcasts when New Yorkers can’t use their services. This ruling makes many business relationships rather tricky and delicate. Not only do sport franchises have sponsorship deals with the DFS websites, the NBA owns equity in FanDuel, while the MLB and the NHL own equity in DraftKings.

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