An appellate court judge granted a temporary stay to daily sports fantasy sites DraftKings and FanDuel hours after a NY judge on Friday granted a temporary injunction [order, PDF] demanding the fantasy sports companies cease operations in that state.
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But DraftKings and FanDuel quickly appealed. It bars them from accepting play from New Yorkers until “a final determination”.
However, following the latest ruling FanDuel – one of only two Scottish start-ups valued at $1bn (£657m)- said it would resume trading in NY.
Fantasy sports started in 1980 and surged in popularity online. But “the protection of the general public outweighs any potential loss of business” while the case plays out, he wrote.
FanDuel’s statement said there are many issues that weren’t considered by the judge when he made this ruling, and that the court will look at them as the case progresses.
But in NY, where people can legally bet on lotteries, horse racing, video slots at racetracks and at some planned casinos, the idea of sitting at a computer and betting on a roster of professional athletes is just too shocking.
Together, Fanduel and Draftkings have over one million regular players in NY alone and comprise 90 to 95 percent of the daily fantasy sports market.
A Hoosier sports insider says we could be seeing the end of daily fantasy sports as we know it. Yahoo has said it believes it’s offering a “lawful product”.
The two companies argue the contests are games of skill, which are legal, while the New York State’s Attorney’s office maintained that they are games of chance, which are illegal. The first ordered DraftKings and FanDuel to stop operating in the state; the second said to play on.
The office of state attorney general Eric Schneiderman is battling to shut down the websites on the grounds that they are in fact gambling operations illegal under state law.
In Washington, the gambling commission specifically concluded that fantasy sports wagering is illegal.
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Pretlow said Friday that lawmakers must await further court rulings before determining whether the Legislature could legalize daily fantasy sports by changing the penal code, or whether it would require a state constitutional amendment.
