Legal Seesaw Battle Continues For DraftKings and FanDuel In New York
Within the space of 12 hours daily fantasy operators in New York went from a technical knockout to a major win. Early Friday morning saw New York Supreme Justice Manuel Mendez take the side of Attorney General Eric Schneiderman with his cease and desist injunction against DFS operators in New York.
Mendez explained his decision by saying,” The balancing of the equities are in favor of the NYAG and the State of New York due to their interest in protecting the public, particularly those with gambling additions. FanDuel, Inc. and DraftKings, Inc., are only enjoined and restrained in the State of New York, DFS is permitted in other states, and the protection of the general public outweighs any potential loss of business.”
However as expected DraftKings did not accede defeat and quickly received a stay order from the appellate court which means they can remain in business for the next few weeks. The next stage is to wait for AG to oppose the stay which they said they will definitely do. Then DraftKings and FanDuel will have until January the 4th to respond. The final step will be for a five judge panel to decide whether Mendez’s ruling will stand or not. This victory for DraftKings is significant as around 12% of their players are from New York. FanDuel who had suspended their activities in New York when AG Schneiderman sent his cease and desist order have announced they will resume taking entries from New Yorkers.
FanDuel released a statement after the decision,” This is only the beginning of the legal process and, perhaps more importantly, the New York legislature is already moving forward on action to ensure our game remains legal and is regulated, which we strongly support. The court specifically noted that this was not a final determination of the issue and that discovery would be needed to fully resolve the legal question, which we think should be decided in our favor when all of the evidence is in.”