DraftKings and FanDuel on pause in New York: What now?

draftkings and fanduel on pause in new york 2016 image

draftkings and fanduel on pause in new york 2016 image

It looks like New York Attorney General Eric Schneiderman has finally got his wish when it comes to daily fantasy sports in his freedom strangling state.

Both DraftKings and FanDuel have agreed to cease taking entry fees (bets) from users in New York.

Your city is safe once again Mr. Schneiderman….except for the rampant tobacco sales, lottery games of chance, rapes, robberies, and murders. I doubt getting rid of DFS will help New York improve its position as the 19th most dangerous state in the Union.

But the attorney general is smarter than me. He’s got the “foresight” to kill off a seemingly harmless industry that could mean billions in tax revenue for his state and the rest of the U.S. over the next couple decades. This guy is brilliant, clearly.

The two major DFS companies do have a stay of execution. Although they can’t operate in NY right now, there is still an appeal verdict coming in September that could open up the gates once again to New Yorkers who want to play fantasy sports for real money.

Just in time for football season.

The loss of revenue in New York is devastating, but it would have been much worse had it not come during the NFL off season. MLB is big in the fantasy world, but the NFL is the top dog in yearly fantasy play as well as daily leagues.

Reports of New York legislators leaning toward making DFS legal does offer some hope for those who love to play daily fantasy sports. It seems, at least, some political leaders in New York can appreciate all the money being generated by this new realm of fantasy play.

It’s possible that new legislation will force law dog Schneiderman to back off. After all, he’s all about enforcing the law.

“As I’ve said from the start, my job is to enforce the law, and starting today, DraftKings and FanDuel will abide by it. Today’s agreement also creates an expedited path to resolve this litigation should that law change or upon a decision by the appellate division,” Schneiderman stated.

If New York legislators do use common sense and allow this DFS golden goose to remain alive, several states will follow suite. Apparently many of the other 49 states are incapable of abstract thought and need New York to show them how to operate.

I’m hoping for the best regarding New Yorkers’ rights to play DFS. Even though I hope to never visit such a place, much less take up residence there, I want others to enjoy the freedom I have. Too many people only being concerned when something they enjoy is taken away is how so many freedoms have been eroded in what used to be the Land of the Free.

Just remember that even if DraftKings and FanDuel are able to make a return to New York, they are going to pay dearly.

I have no doubt that a special tax just for DFS will be created on top of normal income taxes. Not to mention the separate lawsuit by AG Schneiderman accusing both companies of consumer fraud and false advertising. The fines from that lawsuit will be tremendous if DK and FD are on the losing end of the verdict.