FD and DK both say they keep player's money in segregated accounts separate from their operating expenses that they will not dip into. As long as this is true, if they went out out of business all the players funds would still be safe. Of course, we are pretty much taking them at their word for this. They should be able to provide a reputable audit firm that confirms this, but even if they do nothing is ever 100% safe. It should be safe but you never know if they are cooking the books somehow.

Sites like fantasyup that just went out of business have/had no viable business plan and should be questioned more diligently. You cannot offer rake-free games and bonuses on top of that indefinitely and expect to stay in business. FD and DK both have a profitable model if you disregard their advertising budgets (which is supposed to be funded by start-up capital). As long as they keep players money in separate accounts, which I believe they do, there is not a risk to the players.

i never understood the whole "is my money safe?" thing. there really isn't a benefit to keeping more than a few nights worth of buyins on a site, so why do it? I think cash on FD/DK is safe, but if i'm playing $300-$400 a night, I'm not keeping 50k on there. You're assuming a very small percentage of risk for zero gain.
If you're playing $300-$400 a night, keep a couple grand on there, and you're fine.

More an issue for higher stakes players to keep more on there since there is 6k a month dep limits.

If a bettor deposits money into an account with a fantasy site, and the fantasy site manages the security of that account, isn't that just a thinly veiled savings account?

Is there a banking law that governs how a website must behave in regards to player balances?

Not in the United States as far as I know.

There is a responsibility for handling the funds, in accordance with whatever conditions were set forth for depositing/paying for the services to be provided and laws that might govern consumer affairs, gaming, or whatever.

But DFS sites are not banks and player accounts at a DFS or other gaming business are not "savings" accounts.

The question was reasonable, as in at least one non-US igaming jurisdiction I can think of, gaming sites ARE regulated as financial services entities.

No one in this forum must live in Hawaii?

Hawaii’s attorney general says daily fantasy sports contests are illegal gambling

Wonder if it's a small % of their user base are from Hawaii

It's already kind of difficult to play dfs on the west coast where games start at 4pm. If you have a day job it's going to be real tough when games start at 1 or 2. And for NFL games start at 7 or 8am

yeah I'd imagine HI is 1 of the states with the least amount of DFS players

As far as I know Hawaii has no legal gambling whatsoever,not even a lottery,maybe it's changed recently but idk.

Add Mississippi to the "AG says DFS is illegal" list. If one of these smaller states issues a cease & desist, DK/FD may have to decide if they're willing to spend legal fees to keep the narrative alive or cut bait.

CNBC Now ‏@CNBCnow 13m13 minutes ago
BREAKING: FanDuel and Draft Kings' payment processor Vantiv has cut ties with the daily fantasy sites - NYT

saw that just now and its bad

What is the affect of this though ?

The Vintiv article made the front page of the NYT online edition,I don't think they've posted one article about the recent efforts to legalize ipoker and DFS in NY and other states.All the douchebaggery thats fit to print.

I use PP to deposit/withdraw.

Is vantiv that big? Don't even know.

Is Miss AG going the cease and desist route like NY/NV or the "it's just a legal opinion" route like TX/IL?

Vantiv is big, but not irreplaceable.

The reason why they cut ties likely is more worrisome for DFS companies and players. The cost of processing transactions will go up by March 1.

http://www.nytimes.com/2016/01/30/sp...tasy.html?_r=0

“As you are aware, an increasing number of state attorneys general have determined that daily fantasy sports (‘D.F.S.’) constitute illegal gambling,” Jonathan Ellman of Vantiv.com wrote in a letter obtained by The New York Times. “Although in recent weeks D.F.S. operators have raised numerous arguments to the contrary, to date those arguments have been unsuccessful and/or rejected.”

The next item sounds like wishful lawyerspeak to me , unless someone links to a binding Court order in NY on Vantiv that compels processing to continue:

“We are not aware of what Vantiv may or may not have told other industry participants about its plans,” the lawyer, David Boies, said. “However, to be clear, first, Vantiv has not told DraftKings that it plans to cease fulfilling its contractual obligations as of ‘Feb 29, 2016’ (or any other date). Second, Vantiv is under court order to continue to fulfill its contractual obligation to DraftKings.”

Yeah its kinda misleading. Vantiv can only be bound by a court order if they are a party to an action.

PayPal for the win

How long before PP gets weak knees? No one's going to jail but it can cost million$ to settle the cases some of these grandstander's are sure to bring, NY AG in particular.

Makes great news for the DFS-detractors, other than that, very little.

Having worked in the ADW industry for several years, this is much more common than the public would know.

Any negative info regarding the future of Draft Kings in Arizona?

It's already not allowed there

Arizona has had a law on the books since since 1998, I believe, that bars any game with any component of chance. Arizona decision predated UIGEA and I think it can be found here: http://www.azleg.gov/FormatDocument....13&DocType=ARS