Daily Fantasy Sports Betting Banned In New York, Is Colorado Next?
DENVER (CBS4) - Colorado Attorney General Cynthia Coffman hasn't decided if daily fantasy sports leagues must stop operating in the state.
On Tuesday New York banned Fan Duel and Draft Kings, the two largest daily fantasy sports leagues, from taking bets in their home state. Both companies' home offices are in New York City.
New York Attorney General Eric Schneiderman issued a cease-and-desist order, saying bets taken in the daily leagues amount to gambling.
"It looks like it's been a long time coming," said gaming attorney Robert Runco.
Fan Duel and Draft Kings say their daily leagues are a game of skill. They say anyone who knows enough about football can win. Runco says when the sites adopted daily games the business model became a game of chance.
"As you shorten that period ... to per game bets, that takes you out of the realm of skill and into the game of chance," said Runco.
Both sites are already facing mounting legal troubles. Numerous lawsuits have been filed following insider trading allegations when employees at both companies used an algorithm to stack their rosters and bet big on the opponent's sites.
The Colorado Gaming Association has also avoided a decision on whether daily fantasy sports should fall under their regulation.
Gaming insiders say New York's ban of the sites could lead to other states adopting similar bans.
Stan Bush is a general assignment reporter at CBS4. His stories can be seen on CBS4 News at 10. Read his bio and follow him on Twitter @StanBushTV.