The injunction is not the final determination on the ultimate issues of the case, which will be heard in a trial. “The payment of an “entry fee” as high as $10,600.00 on one or more contests daily could certainly be deemed risking “something of value.'”, the justice wrote in his decision”. Peterson broke the tibia and fibia in his left leg, but said Friday he has no problem with what happened. New York Attorney General Eric Schneiderman filed for and was granted his preliminary injunction by Justice Mendez, with Draftkings and FanDuel immediately appealing the decision. But now with companies like FanDuel and DraftKings offering to pay out cash prizes of over $2 billion this year, it seems like everyone is wanting a cut of the action.
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FanDuel disagreed, saying in its statement: “The Attorney General’s argument for season-long fantasy sports being legal does not hold water – if season-long fantasy is legal, than daily fantasy is legal, and vice-versa”. Yahoo has said it believes it offers a “lawful product”. Much of the debate comes down to whether the games are based on chance or skill.
FanDuel calls the ruling “only the beginning of the legal process” and says it ultimately expects to prevail. But today’s decision will still more than likely have reverberating effects in other states that have scheduled upcoming hearings to discuss the legality of DFS, including California, another state that is prime ground for players.
The UIGEA language exempting fantasy sports has no corresponding authority under New York State law as now written, he said.
Mendez didn’t make a final declaration on whether the sites are illegal gambling operations.
“There is a chance FanDuel can still succeed, but that chance is substantially less than it was before”, Nellie Drew, a sports law professor at the University of Buffalo, said in an email. DraftKings can appeal this order.
The attorney general’s office “has established the likelihood of success warranting injunctive relief”, Mendez said in his ruling.
Steiner’s lawyer filed a motion earlier this week to return the case to state court.
Most states have no laws that specifically address fantasy sports but do have gambling laws that might dictate whether they’re legal. The daily version is something developed in the last ten years, where participants draft a team and play games that last just one time or sometimes over a weekend.
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FanDuel, which has its main headquarters in NY, and DraftKings, which has a satellite office in NY but is based in Boston, can still operate their national businesses out of those Manhattan offices but can’t do business with anyone within the state.
