Judge won’t issue order to keep daily fantasy sports in NY

Earlier this week, New York’s attorney general ordered DraftKings and FanDuel to stop accepting in-state bets because he believes they’re illegal sports betting operations. The company blamed that on Schneiderman’s office, saying it has already contacted the bank and payment processors handling FanDuel’s customer deposits and withdrawals, deterring them from continuing.

State attorney general Eric Schneiderman asked for a state court injunction after the two companies failed in their own bid for a court order to remain open.

However, the judge denied the DraftKings’ request for a temporary restraining order against Schneiderman.

“The Court granted our order setting this case for an emergency hearing next Wednesday”.

Mendez agreed. “They have not taken action yet to somehow enjoin the plaintiff from continuing to engage in their business here in NY”, he said. “As a result, we intend to continue operating in NY”.

Top daily fantasy sports companies are fiercely rejecting the idea their rapidly growing industry should be considered gambling in the United States. In many other states, legislators are considering regulations for the websites – which allow users to draft real-life players for virtual teams on a daily, rather than season-long, basis. The Justice Department is also reportedly probing the websites.

In a legal filing Monday, DraftKings argued that it offers skill-based contests legal under NY law.