Appellate Judge Lifts Shutdown Order Against DraftKings And FanDuel
In an hour-long hearing later, the daily fantasy operators made their case for a stay before state appellate Judge Paul Feinman. Schneiderman has said that the sites violate state laws against gambling, calling daily fantasy a game of chance and not a game of skill. The sites had been using a 2006 law, which protects traditional fantasy sports, to get by.
“Fantasy sports teaches us that you’re only as good as the team around you, and we are, as always, honored to have you on our team”, FanDuel wrote on its website to its users.
Mendez granted a preliminary injunction to New York Attorney General Eric Schneiderman, who had argued the sites operated illegal gambling sites.
Both companies plan to appeal the decision.
It’s been a rollercoaster ride of a day for the leaders in the daily fantasy sports industry.
This video includes images from Getty Images.
State Supreme Court Judge Manuel Mendez on Friday had denied a request by the two companies to remain operating in the state as they argue in court.
Therefore, some say that this daily version lets participants spend their money at a frequency the critics believe is similar to sports betting, therefore the NY judge ruled for a fantasy sports shutdown in their state, and it could have implications in other states in the future. The NYAG office has until December 22 to file an opposition to the stay, which a spokesperson from their office said they would, and then FanDuel and DraftKings have until January 4 to reply to the AG’s opposition.
Randy Peterson of the Des Moines Register was knocked over while walking from press row to a postgame news conference Thursday after fans rushed the court in nearby Ames following Iowa State’s 83-82 home win over rival Iowa.
“In Kansas, for example, a contest must prove only that it involves more skill than chance”.
In New York, the chairman of a state legislative committee with authority over gambling predicted this week that the state will ultimately legalize and regulate daily fantasy sports, regardless how the court fight turns out.
Pretlow said Friday that lawmakers must await further court rulings before determining whether the Legislature could legalize daily fantasy sports by changing the penal code, or whether it would require a state constitutional amendment.