N.Y. to Press Daily Fantasy Sports Case Despite New Law
- Attorney general says he’ll still pursue fraud claims
- State legislature approves measure legalizing daily games
The DraftKings Inc. website is arranged for a photograph on an Apple Inc. iPad in Washington, D.C., U.S., on Sunday, Oct. 4, 2015. Fantasy sports companies DraftKings Inc. and FanDuel Inc. raised a total of $575 million in July from investors including KKR & Co., 21st Century Fox Inc. and Major League Baseball to attract players to games that pay out millions of dollars in cash prizes in daily contests.
Photographer: Zia Morales/BloombergNew York Attorney General Eric Schneiderman said he’ll keep pursuing claims that fantasy-sports companies DraftKings Inc. and FanDuel Inc. deceived consumers through false advertising, after the state passed a law making their operations legal.
With state lawmakers voting Saturday to authorize daily fantasy-sports contests, Schneiderman will no longer have a claim that the companies are operating illegally and should be forced to shut down. A successful suit for false advertising and consumer fraud could carry monetary penalties.