Yahoo Follows DraftKings And FanDuel By Exiting New York DFS Market
Following yesterday’s announcement that DraftKings and FanDuel will stop operating real money contests in New York Until at least September, Yahoo have followed suit and have exited the New York market.
New York Attorney General Eric Schneiderman has certainly set a precedent in challenging the legality of DFS. He claims that daily fantasy sort is nothing short of real money gambling and is illegal under state laws. Both DraftKings and FanDuel vigorously defend their industry and claim the DFS is largely based on skill and not luck like gambling.
Yahoo with their DFS product has largely been left alone by Schneiderman which has had his sights on the two powerhouses DraftKings and FanDuel who many believe are a victim of their own success. The last few years have seen hundreds of millions of dollars spent in marketing alone in just about every media channel. This certainly is a major contributing factor as to why they have caught the eye of legislators who are baffled how DFS companies can give away million in cash prizes without it being called gambling.
In a statement Yahoo said they believe their contests are lawful but are suspending paid contests in the Big Apple “pending further review”. They were quick to calm fears and said their decision in New York had no bearing on other states.