US news sources report that Yahoo’s DFS operations have been served a subpoena by the AG’s office to terminate services in New York State.
The media owner, which had re-released its fantasy sports product in April to allow for daily contests, will form part of Schneiderman investigation into whether DFS services breach US sports and internet laws concerning betting.
Since its relaunch Yahoo Fantasy Sports has managed to establish itself as the distant third largest DFS operator behind market leaders FanDuel and DraftKings (data: http://superlobby.com/).
At present it appears that Schneiderman is pushing for a blanket ban on all DFS operators targeting New York.
The New York AG’s subpoena on Yahoo’s DFS services, will represent a blow for the company that has outlined targeting a younger audience and diversifying its product range as key to future corporate growth.
This morning Yahoo Inc released a short statement to the media, commenting that it was monitoring events closely and that it believed it was offering a legal service. Yahoo governance would not further comment on ongoing legal matters regarding the US DFS industry and its ongoing investigation.