Keith Kaneshiro, the prosecuting attorney of Honolulu, Hawaii, has ordered two fantasy sports websites to stop taking bets from residents of the state. The cease and desist order issued by the prosecutor was carried out shortly after an official of the state clarified that betting through online fantasy sports sites is considered as a form of gambling, which is a violation of Hawaii law.
As reported by the Associated Press via ABC News, Kaneshiro contacted the owners of the sites DraftKings and FanDuel through letters. According to the report, through these sites residents in Hawaii can participate in large-scale public betting and receive payouts of up to $1,000.
But, as noted by Kaneshiro, profiting from the bets issued by online users is a form of gambling and is a class C felony in Hawaii. Violators can face a sentence of up to five years in jail in addition to a fine of $10,000, Hawaii News Now has learned.
The Prosecuting Attorney's move came just days after Hawaii Attorney General Doug Chin released an advisory opinion on Jan. 27 regarding the legal status of fantasy sports contests. According to the official, since betting through these sites involves taking risks and heavily relies on chance or luck, it falls under gambling.
FanDuel has not yet released a statement about the steps it will take regarding the order issued by Kaneshiro. The legal representatives of DraftKings, on the other hand, said that the site will no longer accept bets from users. However, they noted that Chin and Kaneshiro's interpretation of the law about gambling is inaccurate, Star Adviser reported.
Attorney Randy Mastro said that playing fantasy sports requires skill and not just luck. David Boise, who's also a lawyer for DraftKings, added that the company hopes Hawaii's local government will change its stance regarding online fantasy sports.
"We are hopeful our constructive engagement with Hawaii legislators will promptly address the issue so that our loyal fans can continue to enjoy the games they love without anyone questioning the legality of their conduct," Boise said in a statement. "In the meantime, we will voluntarily pause operations in the state but hope to resume soon."
