DFS Websites Restraining Order Denied by New York Judge

USA FlagJust yesterday we reported that both FanDuel and DraftKings had filed a restraining order against Attorney General Eric Schneiderman in the hopes of maintaining operations within the state while the AG tries to stop DFS sites from operating within New York State. Late yesterday evening, New York Supreme Court Judge Manual Mendez denied the restraining order.

It was after an investigation spanning a one month time frame that Schneiderman decided that daily fantasy sports were a form of gambling and preceded to send out cease-and-desist letters to DraftKings and FanDuel. In a statement to the public, Schneiderman stated that the investigation found that daily fantasy sports, unlike traditional fantasy sports, are considered an illegal gambling activity under New York law. Schneiderman stated the activity causes social and economic harm like other forms of illegal gambling and is misleading to consumers of New York.

Based on a report at ESPN, the DFS sites filings argued that Schneiderman had determined their product was illegal within the state based on unilateral and unconstitutional means. The sites also stated that Schneiderman began to urge the partners of the sites to stop doing business with the sites.

Now that the ruling has been made in regards to the temporary restraining order against Schneiderman, both FanDuel and DraftKings show no signs of stopping their operations within New York. DraftKings has been vocal in their feelings, having sent out a statement by an attorney representing the brand, Josh Schiller. In a statement, Schiller said that they look forward to the day in court and that there is no creditability to the argument that season-long fantasy is legal while daily fantasy games are not, citing daily fantasy sports requires more skill and less chance.

While DraftKings plans on continuing their offerings in the state, FanDuel announced late last week that they will be limiting options to players in the state to some extent. Players will not be able to make new deposits and will have the option to make withdrawals. The contests of this past weekend were open to residents and they have not stated that members who have money in their accounts would not be able to keep playing.



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