DraftKings and FanDuel Receive Stay Of Execution In New York
DraftKings and FanDuel have been given a much needed temporary legal reprieve in New York today. An appellate division of the Supreme Court ruled that both daily fantasy sports sites can continue to operate until their cases versus the New York Attorney General Eric Schneiderman are finally settled.
The ruling was based on the premise that a shutdown would cause irreparable damage to both businesses as New York is the largest market for both FanDuel and DraftKings with over 600,000 players.
Attorney for DraftKings, David Boies commented on the development,” Daily Fantasy Sports contests are as legal now as they have been for the past seven years that New Yorkers have been playing them. As our litigation continues, we expect an appellate court to see what we have known since the outset: DFS is a game of knowledge and skill, one that builds community and whose competitive spirit has become important to the lives of millions of people. Our ongoing appeal will make clear that daily fantasy contests require just as much skill as season-long contests, which the Attorney General recognizes as perfectly legal under state law.”
FanDuel and DraftKings are adamant that AG Schneiderman’s claims that DFS is nothing more than real money gambling is based on his misunderstanding of how the competitions work. Boies also went on to point out that consumer protection and transparency was at the forefront of DraftKings’ efforts to ensure a regulated industry, He said,” We are engaged with legislatures and attorneys general across the country, including in New York, to ensure that our fans are able to experience our contests in a fun and fair way with appropriate and thoughtful consumer protections in place.”