Former Maryland Attorney General Doug Gansler

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Douglas Gansler and Michael Zeldin quoted in the MarketWatch article, "Big Banks Weigh Halt to Taking Fantasy Cash from FanDuel, DraftKings"

Francine McKenna

November 12, 2015

Douglas Gansler and Michael Zeldin were quoted in Francine McKenna's MarketWatch article, "Big Banks Weigh Halt to Taking Fantasy Cash from FanDuel, DraftKings," on November 12, 2015.

Daily fantasy sports wagering sites DraftKings and FanDuel are saying they’re going to fight the order from New York Attorney General Eric Schneiderman to stop activities in the Empire state, but the more pertinent question is whether their payment processors are also up for a battle.

The two private companies’ main banks, and the banks and payment processors who hold deposits and pay out winnings via PayPal and credit cards must now decide whether to continue their relationship with DraftKings and FanDuel now that Schneiderman has accused them of leading “a massive, multi-billion-dollar scheme intended to evade the law and fleece sports fans across the country.” 

Michael Zeldin, the former chief of the money laundering section at the Department of Justice and an attorney at Buckley Sandler, says his advice to a bank client, now that he’s defending them rather than prosecuting them, would be to step aside given the high risk. “Why would you choose to get in the middle of this legal battle? Generally speaking the fines these days will outstrip any benefits of staying on board.”

“These companies will put their banks and payment processors in a tough spot,” added Doug Gansler, the former attorney general of Maryland and also an attorney with Buckley Sandler, “if they choose to defy the attorney general and continue to operate in New York while fighting this order.”