Both lawsuits were filed in state Supreme Court in Manhattan.
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“As we said, this week was only the beginning of the legal process”, a FanDuel statement said.
NY is also the site of a few of the biggest team sponsorship deals.
DraftKings said in its lawsuit that Schneiderman was “using strong-arm tactics and defying the rule of law”.
Schneiderman aide Damien LaVera said in an email, “DraftKings and FanDuel are operating illegal sports betting websites under NY law, causing the same kinds of social and economic harms as other forms of illegal gambling”.
As we discussed on WNYC’s “Money Talking” this week, with many states having similar gambling statutes on the books as NY, Schneiderman’s ruling could have far-reaching implications for this burgeoning industry. PayPal is still processing payments, pending developments in NY, a spokeswoman said.
New York’s Constitution prohibits gambling.
According to USA Today, people are protesting the decision outside of Schneiderman’s offices.
Schneiderman sent both companies cease and desist letters Wednesday.
And in NY, one thing is certain, a lot of people are playing on the sites.
Modern fantasy sports started in 1980 and have mushroomed online. The pregame sponsorship deal with DraftKings is for the entire season.
But the companies are fighting back hard.
Both companies have continued operations in NY, despite cease and desist letters, as each has dismissed Schneiderman’s actions as being politically motivated.
“These actions were meant to immediately disrupt FanDuel’s NY business adversely, and they have done so”, FanDuel said in its lawsuit.
Of course, the two companies – which are valued at $1 billion each and have numerous investors from the sports and media worlds – were not going to hold any punches. On Thursday, Baker told reporters that he played a free DraftKings game on his smartphone over the weekend and came away believing that the contests are a different animal than regulated casino games.
The games have spawned a cottage industry of blogs, magazines and apps to provide advice and information to players.
The global push for daily fantasy sports has been in the cards long before the latest scrutiny in the United States.
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“Opponents of fantasy sports are determined to take away our right to play, so we need to make our voices heard before it’s too late”, FanDuel wrote in its email.
