Insiders at two leading fantasy sports-betting Web sites are cooperating with state investigators — and their assistance could lead to additional legal action, according to a cable TV report airing Tuesday night.
Attorney General Eric Schneiderman — who’s trying to run FanDuel and DraftKings out of New York — told Showtime’s “60 Minutes Sports” that his crackdown on the companies was far from over.
“I don’t want to pre-judge anything,” Schneiderman said.
“But information that has come forward has suggested that some of the representations they have made— appear to be false and misleading, designed to lure the small players in.”
When asked if he anticipated “more action from the Attorney General’s Office,” Schneiderman hinted that the answer was yes, saying: “I think we’re going to be getting to know each other for a while.”
Schneiderman filed suit against FanDuel and DraftKings last year, claiming the online businesses violated New York’s anti-gambling laws.
A Manhattan judge sided with Schneiderman and ordered the sites shut down pending resolution of the case, but an appeals court reversed that ruling and put them back in business.
DraftKings lawyer David Boies told “60 Minutes Sports” that “the evidence is overwhelming that this is a contest of skill” as opposed to chance, which would exempt it from anti-gambling laws.
FanDuel CEO Nigel Eccles also said he welcomed government regulation of his industry, saying: “It is important that players know that their money’s protected. That the games are fair….That we act as responsible companies.”