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Vantiv Inc Stops Processing DFS Payments
Saturday, January 30, 2016 : US PAYMENT PROCESSOR TO SUSPEND DFS PAYMENTS
While Mississippi AG releases opinion saying DFS is illegal.
In a week of ups and downs, the daily fantasy sports (DFS) industry was dealt another blow as major online payment processor Vantiv Inc. announced it will suspend services to DFS operators as of February 29, 2016.
Vantiv expressed its unease at handling DFS transactions late last year after the New York attorney general declared DFS illegal gambling , leading to DraftKings obtaining a court order preventing the processor from refusing its transactions.
According to Reuters, Vantiv’s letter to its DFS clients notes the growing number of state attorney general’s who have issued negative opinions on DFS’ legality, saying: “while DFS operators have raised numerous arguments to the contrary, to date those arguments have been unsuccessful and/or rejected.”
Vantiv says until it reaches legal clarity on the lawfulness of daily fantasy sports, payments “are off the table”.
An opinion released this week from Mississippi Attorney General Jim Hood is the latest to weigh in on the issue agreeing with determinations from the New York, Illinois, Texas, Vermont and Hawaii attorney general offices that fantasy sports wagering is illegal.
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