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The Illinois attorney general on Wednesday declared daily fantasy sports websites gambling, becoming the third state to in the U.S. to deliver a similar blow to the online industry.
Shortly after announcing the decision, the Illinois Attorney General's Office issued letters to the two biggest players in the industry — FanDuel and DraftKings — warning that state residents "are not eligible to participate in contests."
The decision by Illinois Attorney General Lisa Madigan marks yet another setback for the popular online industry, which has been fighting efforts across the U.S. to shut it down, or scale it back.
FanDuel and DraftKings have argued daily fantasy sports is not gambling but a game of skill, which would allow them to operate in most states that have laws limiting gambling.
But daily fantasy sports suffered serious setbacks in Nevada and New York earlier this year, where officials also deemed it to be a form of gambling.
Madigan's decision on Wednesday would mean Illinois' more than 12 million residents would no longer be able to participate in daily fantasy sports for money.
In fantasy sports, participants pay an entry fee and create fantasy teams based on real players in professional or collegiate sports. The winner is determined by the real performance of the players that make up their fantasy team.
In her decision, Madigan argued that despite the argument that fantasy sports is a game of skill, "persons whose wagers depend upon how particular, selected athletes perform in actual sporting events stand in no different stead than persons who wager on the outcome of any sporting event in which they are not participants."
Madigan's decision effectively shuts down daily fantasy sports in the state unless there is specific legislation authorizing it.
There are currently two bills in the state legislature that would provide exemptions to daily fantasy sports, according to Madigan's letter to legislators.
In New York, the attorney general ordered DraftKings and FanDuel to shut down in November, calling them illegal under state law. An appellate judge in December ruled the sites could continue to operate, however, while the case is disputed in court.
In Nevada, the top prosecutor ruled that the sites need gambling licenses to operate legally there after the state Gaming Control Board issued a "cease and desist" order because they should be considered gambling.
Meanwhile, the FBI has reportedly been looking into the practices of daily fantasy sports websites to see if employees have used insider information to win large payouts.
LINK: FBI, Justice Department Investigating Daily Fantasy Sports Sites
LINK: FanDuel And DraftKings Can Do Business In New York Again
LINK: Nevada Prosecutor Uses DraftKings Founder's Reddit AMA As Evidence Against Him
from BuzzFeed - USNews http://ift.tt/1NMDL6V
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