A Brooklyn man who lost money betting with FanDuel and DraftKings has sued the fantasy sports sites along with the credit card companies that lent him the money to wager on what he calls the sites’ “illegal gambling schemes,” new court papers state.
Yehuda Guttman claims the sites illegally promote games of chance — not skill — because athletes’ performances are affected by elements of chance like injury, referees and weather conditions, according to his Manhattan federal court lawsuit.
“FanDuel and DraftKings operate illegal online sports betting businesses that accept wagers from persons across the nation,” the suit states.
“The bank defendants are in the business of loaning money that was and continues to be used by their recipients, such as plaintiff, for placing bets through the illegal gambling schemes created and operated by FanDuel and DraftKings.”
New York Attorney General Eric Schneiderman is seeking to shutter DraftKings and FanDuel in the state.
In addition to the fantasy sites, Guttman’s suit also names Visa, MasterCard, and American Express.
The suit came as Massachusetts’ attorney general added tighter restrictions in her state.
Maura Healey announced what she called an aggressive, first-in-the-nation plan to regulate the Web sites.
“This is an industry that cries out for transparency and robust consumer protection,” she said. “These are games you carry around with you in your pocket and lose money at the touch of a button.”
Among the regulations would be a ban on anyone under 21 participating and a ban on advertising or promotion of the contests at schools or college campuses. Professional athletes and others connected to pro sports would also be banned from entering contests in their particular sport.
Most players would be limited to depositing $1,000 per month on games, and the companies would be required to identify “highly experienced” players on all contest platforms and offer “beginner” games that would be off limits to the more experienced players.
Contests involving college sports would be banned.
In separate statements, FanDuel and Boston-based DraftKings offered qualified support for Healey’s proposals, with FanDuel saying they made “a tremendous amount of sense,” and DraftKings calling them a “thoughtful and comprehensive approach” to fantasy sports.
With Post Wires