NY Supreme Court Justice Manuel Mendez has rejected the DFS operators’ applications for temporary restraining orders against Schneiderman’s C&D order.
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Bondi spokesman Whitney Ray said her office has had “extensive discussions” with the U.S. Attorney’s Office and thinks the matter should be handled federally.
Boies also argues that Schneiderman improperly singled out DraftKings and FanDuel for his action.
Under the bill, fantasy sports – including the daily products offered by FanDuel and DraftKings – would be labeled a game of skill rather than chance, which would make them permissible in NY.
As John Oliver explained on Sunday, a recent study of daily fantasy sports sites revealed that 91% of all profits won went to just 1.3% of players. “All of this harm would not be confined to NY, but would cause a cascading effect throughout the country-including in the dozens of states where DraftKings continues to operate lawfully, adversely affecting its customer base and its business relations with vendors, customers, and regulators”.
“We look forward to our day in court”, Josh Schiller of Boies, Schiller and Flexner, part of the legal team arguing on behalf of DraftKings, told ESPN.com.
DraftKings has accused Schneiderman of trying to act as “judge, jury and executioner” in his dealings with the company, especially in his attempts to compel the company’s business partners to stop processing payments from New Yorkers.
Schneiderman is now expected to memorialize what he said in the letters by filing for an injunction to stop the companies from accepting business from customers in the state. “As a result, we intend to continue operating in NY”. The brouhaha comes amid an explosion of online fantasy sports wagering, buttressed by professional sports fans being bombarded by television and online commercials from the two competing companies. “People clearly love it. But if we’re going to de-facto legalize sports gambling across the USA we should at least do it on goal, and not because two companies have somehow weaseled out a way to pretend they’re not something that they really are”.
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The companies may have painted targets on their backs through aggressive advertising at the start of the National Football League season that promised large winnings.
