By Jack Ryan
DraftKings and FanDuel are now being blocked from doing business by Citibank in New York!
Already under a growing legal and legislative assault, the daily fantasy sports industry was dealt a new blow yesterday when Citigroup said it would begin blocking New Yorkers’ debit and credit card payments at the two largest sites, FanDuel and DraftKings.
The decision by Citigroup came just a week after a major payment processor for fantasy sites said it was withdrawing from the market, citing legal uncertainties. In a statement, Citigroup said it would block the payments until the New York courts ruled on the legality of daily fantasy sports.
Together, the actions, coming amid the New York attorney general’s efforts to have FanDuel and DraftKings shut down as illegal gambling sites, threaten the financial lifeblood of the industry. In essence, Citigroup provides money through its cards, while the other financial institution, Vantiv, processes the bets. Citigroup’s action was first reported by Bloomberg News.
