Both DraftKings and FanDuel agreed to stop real money contests in New York on Monday after a settlement was agreed with New York Attorney General Eric Schneiderman.
The settlement ensures that should the games be legalised in the state this year then the gambling claims against them will be dropped, though there may still be charges for false advertising and a lack of consumer protection.
This decision is a major one for these operators as New York represents one of the largest DFS markets. In a statement FanDuel said: “New York is a critical state for FanDuel. While it is disheartening for us to restrict access to paid contests in our home state, we believe this is in the best interest of our company.”
Schneiderman stated: “This is a decisive and important victory for the rule of law in New York state. No company or individual no matter how powerful or well financed is above the law.”
It is believed that this settlement could fast forward the legal processes, New York state senator John Bonacic said that it “brings this issue to the forefront and I look forward to working with my colleagues in the Senate and Assembly, and the governor, to see it addressed during the budget process.”
Bonacic himself proposed a bill which is to be discussed and it contains a single payment of $500,000 (£350,000) which companies would have to pay to operate in New York.