New York Attorney General Eric Schneiderman has subpoenaed Yahoo about its daily fantasy sports business, according to a source familiar with the matter. On Tuesday, Schneiderman also asked a court to prohibit DraftKings and FanDuel, the startups that dominate the daily sports industry, from operating in the state.
Yahoo hadn’t previously been a part of Mr. Schneiderman’s investigation into the industry, which he argues equates to illegal gambling. The Silicon Valley firm stayed away from advertisements that promise players quick riches, which were a mainstay for DraftKings and FanDuel in recent months. It also wasn’t involved in allegations that a DraftKings employee used confidential information to win hundreds of thousands of dollars on FanDuel.
Still, what Yahoo offers is essentially the same as what its competitors do. Because Mr. Schneiderman’s core argument is that daily fantasy games are games of chance, not of skill, it’s hard to see any substantive difference between Yahoo’s operations in the New York and that of other daily fantasy sports companies.
Source:: AdAge – Digital