Earlier this week, New York’s attorney general ordered DraftKings and FanDuel to stop accepting in-state bets because he believes they’re illegal sports betting operations.
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NY Attorney General Eric Schneiderman took action against the New York-based DraftKings and the Massachusetts-based FanDuel last week saying their daily fantasy sports business is illegal under NY law.
On Monday, Boston-based DraftKings and New York-based FanDuel asked Justice Manuel Mendez for an immediate restraining order to stop Schneiderman until they can present their case.
FanDuel said it has over 1 million users, with “hundreds of thousands” in NY whose deposits it has been unable to process since Friday. The company blamed that on Schneiderman’s office.
Las Vegas attorneys who have been following the fantasy sports saga say action is necessary by the companies in NY because the cease and desist order by the NY AG is the sort of action that could influence other states, just as Nevada’s action against the two fantasy sports giants has been widely cited.
The two applied for the temporary restraining orders to enable them to keep operating while waiting for the lawsuit hearings, which have been scheduled for November 25.
Critics say the websites are venues for sports gambling, while the companies argue their contests are really games of skill, not chance.
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DraftKings said it was “confident in our legal position” and meant to keep operating in the state.
