DraftKings exits Hawaii after prosecutor drops cease and desist order

Daily fantasy sports operator DraftKings is exiting the state of Hawaii after a city prosecutor issued a cease and desist order.

Last week, Hawaii state Attorney General Doug Chin issued an opinion that DFS was illegal gambling under state law. On Monday, Honolulu city prosecutor Keith Kaneshiro sent letters to both DraftKings and FanDuel ordering them to “immediately cease and desist” their dealings with customers in Oahu.

FanDuel has yet to comment on the C&D order but DraftKings’ high-priced attorney David Boies issued a statement saying that, while the company disagreed with Chin’s opinion, it would “voluntarily pause operations” in Hawaii. Boies said DraftKings would continue its “constructive engagement” with state legislators in the hopes that they would swiftly pass bills exempting DFS from state gambling laws.

The Boston Globe quoted a source claiming that DraftKings was nobly foregoing an admittedly small chunk of its overall revenue in order to protect its players, based on the company’s belief that Chin’s opinion suggested DFS players could face their own charges if they continued to play with the site.