Saturday, April 30, 2016 : DAILY FANTASY SPORTS OPERATORS EXIT ALABAMA MARKET
State AG's "cease and desist" warning prompts exodus of FanDuel and DraftKings.
Alabama daily fantasy sport fans will be unable to participate in competitions following a decision Friday by market leaders DraftKings and FanDuel to leave the market in compliance with a "cease and desist" letter from state Attorney General Luther Strange.
InfoPowa readers will recall that AG Strange issued an opinion earlier this year that DFS was gambling and therefore illegal in the state.
In his April 5 letter to DFS providers, AG Strange said that his opinion that DFS constituted illegal gambling was based on a careful review of Alabama’s gambling statutes, and he therefore gave the operators until May 1 to cease accepting business from Alabama residents.
In a statement DraftKings noted the AG's opinion and said that it did not agree with it. Nevertheless, it would comply with the cease and desist letter, the company said, adding that it was prepared to engage in a constructive manner with Alabama lawmakers, as it has done in other US states.
FanDuel's statement emphasised that the company believes it has always operated within Alabama state laws, but will comply with the cease and desist order.
Both companies have added Alabama to their lists of blocked states, and as at Saturday morning advisory emails were reportedly going out to Alabama players.
Observers said that the departure of the market leaders from the Alabama market would probably prompt other, smaller operators to follow suit.
Whether Alabama lawmakers have an appetite for pushing ahead with DFS legalization measures, as has been the case in other states following an adverse AG opinion, is now the major DFS question in the state.