DraftKings, FanDuel defiant in the face of NY cease-and-desist letters

Neither of the two fantasy sports companies targeted by New York Attorney General Eric Schneiderman as illegal gambling enterprises will stop operating in the state until after they meet with his team.

“This is the beginning, not the end of the legal process,” said Marc Zwillinger, counsel to FanDuel, to reporters on Wednesday.

“Players can certainly still bet on FanDuel,” added Nigel Eccles, the company’s chief executive officer.

Along with industry competitor DraftKings, FanDuel received a letter from the state attorney general on Tuesday demanding that they end all operations and accused them of enabling illegal gambling.

The grounds for the accusation lie in that Schneiderman said they offer winnings to their customers not based on skills but rather on chance.

“We are very disappointed that New York Attorney General Eric Schneiderman took such hasty action today, particularly since he did not take any time to understand our business or why daily fantasy sports are clearly a game of skill,” DraftKings said in a statement Wednesday.

“New York’s actions today are an unfortunate example of a state government stifling innovation, technology and entrepreneurship and acting without full and fair consideration of the interests of consumers,” the statement added.

Both companies have five days to offer either written arguments or make their case in person, though neither company nor Schneiderman would comment on when the meetings would take place.

FanDuel attorney Zwillinger told reporters that they looked forward to meeting with the attorney general and were prepared to state their case. He said Schneiderman was inconsistent in targeting the companies but not their customers.

“If the player is not doing anything wrong, then neither is FanDuel,” Zwillinger added.

In his announcement about the cease-and-desist letters, Schneiderman said he was resolute in proving both companies are as harmful to consumers as other forms of gambling illegal in the state.

“Daily fantasy sports is neither victimless nor harmless, and it is clear that DraftKings and FanDuel are the leaders of a massive, multi-billion-dollar scheme intended to evade the law and fleece sports fans across the country,” Schneiderman said in a statement