As noted in Judge Manuel J. Mednez’s ruling, FanDuel and DraftKings are facing questions of whether their games subject players to “the fraudulent perceptions that the games are winnable”.
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The industry tried to win the case in NY by making an argument that could doom them in Florida, namely that the sites are legal in NY because they are games of skill. But at a November 25 hearing in NY, attorneys for the companies denied they promote gambling. “The payment of an “entry fee” as high as $10,600 on one or more contests daily could certainly be deemed risking ‘something of value'”.
Although DraftKings has filed an appeal, Roth believes it will be unsuccessful. The company had issued a statement earlier.
This does not mean that Daily Fantasy Sports are dead in New York State from now on, just while this action is pending in the courts. In issuing a preliminary injunction, the judge considers “the extent of the irreparable harm, each party’s likelihood of prevailing at trial, and any other public or private interests implicated by the injunction”.
“I wouldn’t say that I am surprised”, said Marc Edelman, an Associate Professor of Law at the Zicklin School of Business, Baruch College, City University of NY, who specializes in gaming and sports law, in an interview.
Last month, New York Attorney General Eric t. Schneiderman determined that daily fantasy sports game constitute illegal gambling under state law.
FanDuel spokeswoman Justine Sacco and DraftKings spokeswoman Sabrina Macias didn’t immediately respond to e-mails seeking comment.
Since the beginning of the National Football League season, daily fantasy giants FanDuel and Draftkings have been employing an aggressive advertising style. Also, at least two owners – Jerry Jones of the Cowboys and Robert Kraft of the Patriots – have made investments in DraftKings.
However, the two companies continue to argue that they engage in “skill based games”. Customers from the following states are now ineligible to participate on FanDuel: “Arizona, Iowa, Louisiana, Montana, Nevada, New York or Washington”.
Yahoo! Inc., which was subpoenaed over its daily fantasy operations but wasn’t included in Schneiderman’s order, also remains open for business in NY.
“Daily fantasy sports games have been played openly, permissibly, honestly in NY by hundreds of thousands of fans – including some members of the Assembly”.
Citing the Professional and Amateur Sports Protection Act, Wallach said states can decriminalize and regulate daily fantasy sports but “cannot authorize or license it”.
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“The fact that NY court actually struck down… really a huge blow to DraftKings…”
