Amid the increasing regulatory and legal challenges in the states around the country with regards to whether Daily Fantasy Sports constitutes gambling, one of the two largest DFS operators in the industry is paring back staff.
A source at the New York-based FanDuel said that the operator had begun a process of laying off some of their staff. A senior executive of he company announced the lay-offs. it is not known how deep these cuts are or in how many departments. Initially when approached for comment, a spokesperson for FanDuel, denied that there were any lay-offs in the pipeline.
The lay-offs at FanDuel has come at a time when DFS is currently under siege, and very recently the Texas Attorney General, Ken Paxton stated he considered Daily Fantasy Sports was considered as illegal gambling in his state.
Texas is the most recent of a number of states that are ongoing who are classifying the Daily Fantasy Sports as gambling. Other states that have targeted FanDuel, and DraftKings, and placed legal binds on them include Washington State, Illinois, New York, Massachusetts, and Nevada.
Peter Schoenke, who is the chairman of Fantasy Sports Trade Association, said that if A.G. Paxton was truly concerned about the small businesses that are operating in Texas as well as the millions of people who enjoy Fantasy Sports, he would stop the grandstanding and begin working with FSTA and Texas Legislature towards common sense consumer protection issues like those that are being proposed in Illinois, Massachusetts, Indiana, Florida, California and other states who are looking towards the future.
The Fantasy Sports Trade Association, FanDuel, and DraftKings, continue maintaining that, the Daily Fantasy Sports is a game of skill and therefore, shouldn’t be classified as gambling.