Boston Globe Reports Jeff Ifrah’s Prediction That DFS Truce Will Lead to NY Bill
March 22, 2016
DraftKings Inc. on Monday announced it would temporarily stop doing business in New York, a tactical move that shifts its long-running court battle to the state capital, where legislators are considering a bill that would expressly legalize daily fantasy sports.
The Boston-based company and its main competitor, FanDuel Inc., struck the cease-fire agreement with New York Attorney General Eric Schneiderman, who in return agreed to suspend his efforts to shut down the companies for running cash contests that he says amount to illegal gambling…
Jeff Ifrah, a lawyer who represents several smaller daily fantasy operators, said the truce suggests FanDuel and DraftKings believe the Legislature will pass a bill in their favor. “For an agreement like this to be negotiated there must be some confidence on the side of the industry that legislation is likely to pass,” Ifrah said. The settlement “is a good resolution, because it allows them to avoid potentially massive liability for the gaming-related counts” in Schneiderman’s complaint…
Ifrah said the deal was prompted by building pressure on both sides: The legalization of daily fantasy sports would have severely undermined Schneiderman’s gambling charges, he noted, while the threat of harsh penalties was a dark cloud over DraftKings, FanDuel, and their financial partners…
Ifrah speculated that the companies were more willing to negotiate with Schneiderman after the end of the National Football League season, which forms the basis of their most popular contests.