Yahoo drawn into NY fantasy sports probe

Yahoo drawn into NY fantasy sports probe

The New York attorney general’s office has issued a subpoena to Yahoo as part of its probe of the daily fantasy sports industry, a source familiar with the matter confirmed on Wednesday morning.

The subpoena, which was first reported by The New York Times, seems to indicate that Attorney General Eric Schneiderman has broadened his investigation into the industry beyond its two major players, FanDuel and DraftKings.

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"Yahoo does not comment on legal matters,” a representative said in a statement. “We are monitoring industry trends and events closely and believe that we offer a lawful product for our Daily Fantasy Sports users."

Yahoo, known for running a season-long fantasy sports product, started offering daily fantasy sports this summer.

Last week, Schneiderman penned letters to the two fantasy sports companies informing them that he had concluded they were operating illegal gambling contests and ordering them to stop taking bets.

The letters have triggered a flurry of legal motions from both sides. Both websites have sued Schneiderman and asked a judge to rule that their services do not constitute gambling. Schneiderman responded on Tuesday by asking a judge to force the services to stop taking bets.

A hearing in the case is set for next Wednesday. FanDuel has started to keep players in New York from entering contests, while DraftKings users in the state are still able to play.

New York has become a flashpoint in a wider, nationwide debate over daily fantasy sports.

The websites allow users to make virtual teams of real-life players and win large jackpots if they do well. Unlike traditional fantasy sports, which are played over the course of a season, the websites host contests that only last a day.

Critics say this has turned them into gambling venues, while the websites argue they are hosting games of skill, rather than chance. Some have also raised concerns about the way player data is protected on the platforms.