Vantiv Bailing Out Of US Daily Fantasy Market
We reported a while ago on online payment processor Vantiv stopping to take payments from New York DFS players due to the AG’s legal battle with operators in the state.
It is now been reported in the New York Times that they have already informed DraftKings and FanDuel that they will be suspending all processing for payment transactions for DFS throughout the US effective as of Feb.29.
This is yet another blow for the daily fantasy sector market that is still reeling from the seemingly endless onslaught from all sides. In a statement Vantiv tried to give the impression their move maybe a temporary one but it is clear that they are feeling the pressure. Their statement said they are, “firmly committed to the online gaming and fantasy gaming segments” and will continue to work with stakeholders for “a long-term solution to the ongoing DFS controversy.” But until there is “better clarity and long-term certainty around the regulatory and judicial landscape.”
Vantiv also made it clear the number of state Attorney Generals joining the anti DFS bandwagon and who have succeeded in legally arguing the case against DFS operators is a factor in their decision.
DraftKings will certainly fight Vantiv’s latest move. What makes things even more unclear is that DraftKings Attorney, David Boles said that Vantiv” has not told DraftKings that it plans to cease fulfilling its contractual obligations as of ‘Feb. 29, 2016’ (or any other date). Secondly, Vantiv is under court order to continue to fulfill its contractual obligation to DraftKings.”