America's daily fantasy sports (DFS) industry took another hit this week as an online payment processor, Vantiv, announced the suspension of transactions related to DFS operators starting February 29, 2016.
The payment processor revealed concerns regarding the handling of such transaction at the end of last year following the New York Attorney General's final word on the topic of DFS deeming it an illegal gambling activity.
DraftKings has responded with a court order preventing the processor from restricting its transactions.
Reuters reported that Vativ sent a notification letter to DFS clients noting the significant number of state Attorney Generals that have confirmed that DFS is illegal saying, “while DFS operators have raised numerous arguments to the contrary, to date those arguments have been unsuccessful and/or rejected.”
Until there is additional light shed on the matter and legalities, Vantiv reassures the industry that DFS transactions “are off the table”.
PayPal is another processor and e-wallet that accepts DFS transactions and a spokesperson, Martha Cass, said, "We are aware of Vantiv's recent decision to discontinue processing payments for Daily Fantasy Sports services. We continue to review and consider ongoing developments in relation to daily fantasy sports."
Vantiv's announcement may have a ripple effect with additional payment processors to follow until there is more clarity on the topic of DFS.
Mississippi Attorney General Jim Hood has joined in on the band wagon along with New York, Illinois, Texas, Vermont and Hawaii determining that daily fantasy sports betting is illegal.