Hours later, appellate judge Paul Feinman – hearing an emergency challenge to the ruling – said the companies could keep doing business in the state for now.
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“Daily Fantasy Sports contests have been played legally by New Yorkers for the past seven years and we believe this status quo should be maintained while the litigation plays out”, said its lawyer David Boies.
New York Supreme Court Justice Manuel Mendez granted the injunction sought by AG Eric Schneiderman, who said the daily fantasy sports games are illegal.
But in the meantime, they can accept paid entry fees from NY fantasy sports players, which is huge considering the NFL season is still in full swing (football is arguably the most popular sport in the world of fantasy sports).
But until then, at least for now, it’s business as usual. His memorandum stated, “So-called Daily Fantasy Sports (‘DFS’) wagers fit squarely in both these definitions, though by meeting just one of the two definitions DFS would be considered gambling”.
“Fantasy sports teaches us that you’re only as good as the team around you, and we are, as always, honored to have you on our team”, FanDuel wrote on its website to its users. While Collins had not yet reviewed Mendez’s order when speaking to WBFO, he criticized New York State for “hypocrisy” in going after sites such as DraftKings and FanDuel, all while the state itself is in the business of games of chance. In his decision, Mendez cites “a likelihood of success on the merits” of Schneiderman’s case against the sites.
It is the NYAG’s contention that DFS [daily fantasy sports] played on Fanduel, Inc. and Draftkings, Inc., results in customers placing bets labeled “entrance fees” on events they can not control or influence, relying on the real-game performance of professional athletes, to win a prize, which amounts to gambling as defined in Penal Law 225.00 [2].
“Today’s preliminary decision was wrong and we expect we will ultimately be successful”, FanDuel said in a statement.
But late Friday afternoon, the Appellate Division of state Supreme Court granted an immediate stay of the injunction.
Experts say the legality of the games is highly questionable in Florida, where the law doesn’t distinguish between games of chance and skill.
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“This is only the beginning of the legal process”, FanDuel said.
