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DraftKings, FanDuel Agree To N.Y. Shutdown

The daily fantasy sports sites DraftKings and FanDuel on Monday agreed to stop offering paid contests in New York in a settlement with state attorney general Eric Schneiderman. The sites are big TV advertisers and have received investments from prominent media companies (including Comcast and Fox Sports) but have come under fire as essentially gambling sites, and not the games of skill their promoters claim.

DraftKings and FanDuel announced the settlements on Monday as Schneiderman withdrew prior cease-and-desist orders against them, while continuing to pursue claims of false advertising and consumer fraud. The ban is in effect until September, when a state appeals-court ruling is expected, or until the state legislature legalizes daily fantasy sports, USA Todayreported.

Schneiderman has said he believes the two sites are "totally unregulated gambling venues," Legal Sports Report reported. New York is the largest market for daily fantasy sports and some two dozen states are now looking at legislation governing daily fantasy sports, perThe Wall Street Journal.  

Links to the settlements are here and here.