Mendez agreed with Schneiderman’s contention that the companies are operating illegal gambling sites based on how NY law defines gambling. That’s what a New York Supreme Justice Judge said today when he granted the New York State Attorney General’s preliminary injunction against DFS operators, a devastating blow to the entire industry and its millions of customers in the Empire State.
Advertisement
UPDATE: ESPN reports that an appellate judge has issued an emergency temporary stay to the sites, which will allow them to continue operating in NY through the end of 2015.
The company maintained that the outcome of fantasy sports contests “are determined by skill, not chance”.
Since the beginning of the National Football League season, daily fantasy giants FanDuel and Draftkings have been employing an aggressive advertising style.
On Friday, a New York judge ruled for fantasy sports shutdown in New York State regarding the top daily fantasy sports companies FanDuel and DraftKings, saying the two companies have to halt their business there.
The ruling comes amid debate nationwide about whether online fantasy sports players are competitors or bettors.
The ruling Friday will be followed by the appeals by the companies, as well as the discovery process as the case gets a further review by Mendez.
The decision is not a final word on whether daily fantasy sports constitute illegal gambling under the state’s laws and constitution. As a result, FanDuel halted operations in the state shortly after. Schneiderman’s office declined to comment on that question but also has subpoenaed information from Yahoo, which also offers daily fantasy sports in NY. DraftKings says it will remain fully operational at this time in NY. “It’s clearly a game of skill”, Stern said.
It is not yet known how the decision will impact active bills in the legislature that deal with DFS in NY, with assemblyman Dean Murray having put forward a bill just this week in an effort to alter state law over DFS.
But 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.
Advertisement
Former NBA commissioner David Stern called the legal probing of daily fantasy sports nonsense during his appearance Thursday at the Sports Business Journal Intercollegiate Athletics Forum in NY. The state already has legalized some forms of gambling, including lotteries, betting on horse racing, video slot machines at racetracks and a number of forthcoming casinos.
