DFS news roundup: Operations shut down in New York

Daily fantasy sports (DFS) giants FanDuel and DraftKings on Monday agreed to stop offering contests in New York until September, unless legislation is passed that allows them to operate.

In September, a primary appeal hearing will be held regarding the legality of DFS in New York.

The agreement is part of a settlement the sites reached with New York Attorney General Eric Schneiderman (the settlement agreements can be viewed here and here), four months after Schneiderman issued to them a cease and desist letter. The sites had been engaged in a legal back-and-forth with the attorney general's office since November, but continued to operate real-money contests in New York until this week.

Meanwhile, there are various bills written that aim to regulate DFS in New York, but only one, S6793, has gained any traction. That bill was submitted by Sen. John Bonacic, who chairs the state gaming committee.

The settlement agreement has other conditions and stipulations. If legislation is passed before June 30, 2016 – when the New York Senate and Assembly adjourn for the summer – then lawsuits between DraftKings and FanDuel and the attorney general will be dropped. If no legislation is passed, and the attorney general wins the September appeal, then all lawsuits by the DFS sites are to be dropped. And beginning this week, DraftKings and FanDuel must "process requests for users who have an address in the State of New York to withdraw their account balances within seven (7) days of receiving such requests."

• Following the settlement agreements signed by DraftKings and FanDuel, Yahoo! Daily Fantasy Sports has decided to suspend its real-money DFS contests in New York. A Yahoo spokeswoman commented, "Yahoo believes that its contests are lawful and we will continue to assess the legal environment for DFS while providing a compelling fantasy sports experience for all of our users."

• Across the Hudson River, DraftKings and FanDuel are opposing proposed legislation that would regulate and tax the DFS industry in New Jersey, because the bill does not specify whether DFS is considered a game of skill or chance. The fear is that if DFS were to eventually be considered a game of chance in New Jersey, it would be classified as gambling and therefore set a precedent for other states with anti-gambling laws. The New Jersey Senate's Wagering and Tourism Committee voted 5-0 to approve the measure last week, despite the opposition.

• In lighter news, global DFS operator Mondogoal has partnered with Real Madrid. In an official release, Mondogoal said it plans to "leverage club images and assets to create and promote a team-branded experience for Real Madrid fans around the world."