Douglas Gansler and Michael Zeldin quoted in the Law360 article, "Banks Must Choose Whether Daily Fantasy Is Worth The Risk"
November 13, 2015
Douglas Gansler and Michael Zeldin were quoted in Evan Weinberger's Law360 article, "Banks Must Choose Whether Daily Fantasy Is Worth The Risk," on November 13, 2015.
With regulators taking a hard look at banks’ compliance with anti-money laundering, Bank Secrecy Act and other compliance issues, the costs of continuing their relationships with DraftKings and FanDuel may outweigh the already significant amount of money those two clients provide.
“Basically, banks and payment processors have a choice until the case is resolved; they can be on the side of Schneiderman or they can be on the side of either of these companies. There is no easy middle ground,” said Michael Zeldin, of counsel with BuckleySandler LLP.
The situation with daily fantasy sports is slightly different. Schneiderman’s assertion that DraftKings and FanDuel violate New York’s gambling statutes do not carry the force of law. Instead, they have to be adjudicated by a judge.
“What happened is Schneiderman said, in his view, online fantasy sports is illegal. That does not have any actual legal weight beyond being his view as the chief legal officer of a state,” said former Maryland Attorney General Douglas Gansler, now a partner at BuckleySandler.
If banks ultimately decide DraftKings and FanDuel are not worth the gamble, their businesses would likely be in danger unless a judge rules in their favor quickly.
“It certainly would be a blow to their business,” Zeldin said.