Citigroup blocks DFS transactions in New York
Bank to stop processing payments from FanDuel and DraftKings until legal status of daily fantasy is resolvedÂ
FanDuel and DraftKings have been dealt another major blow in New York after Citigroup announced it was blocking payment transactions from daily fantasy sports (DFS) players in the state. [private]
The financial services giant â the largest credit card lender in the world â said it was blocking payments from both operators in the state until the legal status of DFS was resolved in the courts.
According to reports in Bloomberg, Citigroup spokeswoman Jennifer Bombardier confirmed the ban would remain in place until the court makes a final decision on the matter.
Citigroupâs decision comes a little over a week after payment processor Vantiv announced it was exiting the DFS sector over its murky legal status in the US.
FanDuel and DraftKings are currently locked in a fierce legal battle with New York Attorney General Eric Schneiderman, who last year opined the activity met the definition of illegal gambling under state law.
Schneiderman issued both operators with cease and desist letters and asked them to exit the state; in turn DraftKings and FanDuel filed lawsuits against the AG.
DraftKings and FanDuel scored a major victory last month when a court ruled they could continue to operate in New York until a final ruling on the legal status of DFS was reached.