DOJ Set To Declare DFS As Gambling By Year’s End
A report in the New York Post is claiming that the Department of Justice who launched an investigation last month into the DFS industry is planning to declare daily fantasy sports a gambling activity before the end of the year.
As we reported the notorious Preet Bharara who was responsible for the 2011 Black Friday indictments is reported to have launched an investigation into the workings of the DFS industry. Both DraftKings and FanDuel are fighting for other lives and no publicity machine, no matter how well-oiled can convince any objective outsider looking at the recent developments unfold to think otherwise.
The event that sparked off the crisis was the leaking of the report that employees of DraftKings and FanDuel had succeeded in winning large sums of money based on insider information. Since then it has been an avalanche of bad publicity followed by reports of increasing federal and state investigations into just how these operators conduct business.
The latest blow from New York Attorney general Eric Schneiderman could not have been worse as DraftKings was in the process of looking to raise more money in an additional round of funding. As it stands now no corporate company or sporting franchise will be prepared to invest further until there is clarity as to the legal status and future viability of the DFS market.