After coming under fire thanks to the New York Attorney General’s ruling that daily fantasy sports are illegal, two top DFS companies have the option to stay in operation just a little bit longer. On Monday, an appellate panel agreed to allow DraftKings and FanDuel to remain in business for residents of New York while they appeal the AG ruling.
Both sites will be able to stay in operation in the months leading up to their court date, which is set for May with the New York Supreme Court. It was in late 2015 that New York State Attorney General Eric Schneiderman saw the New York Supreme Court Justice side with him by ordering the sites to remove operates from the state immediately. The companies were then granted an emergency stay with the ruling on Monday a permanent stay.
Based on filings by both companies, the residents of New York make up almost 13% of their active users. In a statement after the most recent ruling, FanDuel stated that they are grateful for the legions of fantasy sports players in New York that the permanent stay will ensure that these players can continue to participate in the games as the case progresses.
DraftKings also commented on the permanent stay ruling, stating they are pleased with the ruling. DraftKings reiterated that daily fantasy sports contests are legal now just as they have been for the past seven years as residents of New York played them. DraftKings says they expect an appellate court to see what they have seen from the beginning, that DFS is a game of both knowledge and skill, one that builds community and has a competitive spirit that is important to the lives of millions of people.
For now, both companies will be able to operate in the state thanks to the permanent stay. It will be interesting to see what happens once May arrives and the matter is considered by the courts.
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