It’s now a waiting game for daily fantasy sports websites DraftKings and FanDuel to see if they can maintain their operations in New York. They’re in a battle with New York State Attorney General Eric Schneiderman over whether the games constitute illegal gambling. A New York appellate court judge on Dec. 11 issued an […]
It’s now a waiting game for daily fantasy sports websites DraftKings and FanDuel to see if they can maintain their operations in New York.
They’re in a battle with New York State Attorney General Eric Schneiderman over whether the games constitute illegal gambling.
A New York appellate court judge on Dec. 11 issued an emergency stay that allows state residents to keep playing on the sites, according to the website of The Wall Street Journal.
The stay continues until at least Jan. 4, the paper reported. A five-judge panel in January will hear both sides and decide whether to extend the stay or allow the original court ruling to shut down the sites go into effect, the publication added.
Earlier on Dec. 11, a judge had ordered DraftKings and FanDuel to stop conducting business in New York. A judge had granted Schneiderman’s request to keep the websites “from doing business in the state of New York, accepting entry fees, wagers or bets from New York consumers in regards to any competition, game or contest run on” those sites.
The attorney general’s office released a statement in response to the decision.
“We are pleased with the decision, consistent with our view that DraftKings and FanDuel are operating illegal gambling operations in clear violation of New York law. I have said from the beginning that my job is to enforce the law, and that is what happened today,” Schneiderman said.
Schneiderman on Nov. 17 filed documents seeking the preliminary injunction against DraftKings and FanDuel.
Six days earlier, his office announced that Schneiderman had sent cease-and-desist letters to the two companies ordering the two largest daily fantasy sports companies in the U.S. to stop accepting bets inside the Empire State.
Company reaction
On its website, New York City–based FanDuel, Inc. responded with a statement saying it planned to appeal the decision.
“…this is only the beginning of the legal process and, perhaps more importantly, the New York legislature is already moving forward on action to ensure our game remains legal and is regulated, which we strongly support. The court specifically noted that this was not a final determination of the issue and that discovery would be needed to fully resolve the legal question, which we think should be decided in our favor when all of the evidence is in,” the statement read.
FanDuel went on to say that New Yorkers have been able to legally play its games for more than six years, contending that the preliminary decision was “wrong and we expect we will ultimately be successful.”
On the website of Boston–based DraftKings, the company includes a tab in its menu at the bottom of the home page that reads “100% legal.” On that page is a message that reads “playing on DraftKings is 100% legal in the USA.”
That same page includes a box with the question, “Why is it legal?” The company answers its own question saying, “The legality of daily fantasy sports is the same as that of season long fantasy sports. Federal law and 45 of the 50 U.S. states allow skill-based gaming.”
FanDuel and DraftKings also face legal battles in other states, as governments wrestle with the questions of whether daily fantasy sports contests are gambling and if they should be allowed or regulated.