NY judge suspends two fantasy sports websites

Both companies are expected to appeal the decision because it is definitely not the last word so far as the daily fantasy sport business is concerned. Schneiderman has argued that the sites are illegal gambling operations and should be banned.

The ruling was a major setback in the sites’ largest market – with more than 1.2 million customers, NY accounts for more than 12 percent of players, according to Eilers Research.

FanDuel agreed to suspend its operations in the state until the outcome of today’s hearing, while DraftKings had defiantly continued to take bets, but must now cease to do so.

After briefly being put out of business in NY, daily fantasy sites FanDuel and DraftKings were given new life by an appeals court.

Daily fantasy sports giants DraftKings and FanDuel were ordered Friday to stop operating in NY, dealing a severe blow that is likely to reverberate across the industry.

After Mendez’s ruling, DraftKings attorney David Boies said he would “immediately file an emergency notice of appeal in order to preserve the status quo”.

“They’re a good starting point”, Stephen Martino, a FanDuel lawyer said.

FanDuel also released a statement: “This is only the beginning of the legal process and, perhaps more importantly, the NY legislature is already moving forward on action to ensure our game remains legal and is regulated, which we strongly support”. In Washington, the gambling commission specifically concluded that fantasy sports wagering is illegal. His memorandum stated, “So-called Daily Fantasy Sports (‘DFS’) wagers fit squarely in both these definitions, though by meeting just one of the two definitions DFS would be considered gambling”. In the filings, he also included a request for injunctive relief to bar both sites from accepting fees/wagers in New York State while the action was pending, and that was granted today. FanDuel didn’t immediately comment on Mendez’s decision.

Dallas Cowboys owner Jerry Jones has defended his investment in DraftKings, saying it “creates more interest” for fans.

An employee in the software development department of DraftKings, a daily fantasy sports company, walks past screens displaying the company’s online system stats in Boston.

DraftKings and FanDuel argue their contests are highly competitive games of skill, not chance.