Payment Processor For Daily Fantasy Sports To Cease Operations

by | 01.29.2016 | 5:53pm

Vantiv Entertainment Solutions processes fans' payments for daily fantasy sports websites, including those of FanDuel and DraftKings; without the fulfillment of that role, the companies would not be able to operate. Vantiv has announced that it will stop accepting payments for DFS companies on Feb. 29, according to the New York Times.

A letter from Vantiv's Jonathan Ellman stated: “As you are aware, an increasing number of state attorneys general have determined that daily fantasy sports ('D.F.S.') constitute illegal gambling, Although in recent weeks D.F.S. operators have raised numerous arguments to the contrary, to date those arguments have been unsuccessful and/or rejected.”

State attorneys general have been on the attack regarding DFS; to date, Texas, Illinois and New York have all declared the games illegal under state gambling laws. Though the percentage of DFS accounts handled by Vantiv is unknown, the company's decision could have crippling effects on the $2-billion industry. The results could be especially dire if major banks and credit card companies decide to follow Vantiv's lead.

Read more at the New York Times.

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