Fantasy sports services to appeal NY court ruling

This has enabled fans to spend money on the games with a frequency that critics say is akin to sports betting.

Schneiderman said the Mendez ruling is “consistent with our view that DraftKings and FanDuel are operating illegal gambling operations in clear violation of ny law”.

“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.

The order issued Friday by state Supreme Court Justice Manuel Mendez also denied attempts from the country’s two biggest daily fantasy sports to block the state’s attorney general enforcement action. But the level of support for these bills is unclear and lawyers said the state’s attorney general could challenge any such laws as being unconstitutional.

FanDuel said it would appeal the ruling.

FanDuel was founded in 2009, and Draft Kings started offering daily fantasy sports in 2012. Yahoo has said it believes it offers a “lawful product”.

DraftKings and FanDuel has argued that daily fantasy sports were games of skill, not chance.

What impact this decision will have on other states where DFS is being discussed is unknown at this time.

“We look forward to demonstrating to the Appellate Division why they should uphold today’s decision to grant a preliminary injunction barring DraftKings and FanDuel from continuing their illegal gambling operations in New York”, Schneiderman spokesman Damien LaVera said in an email. But the lawmakers aren’t back until January, and it’s unclear how quickly they would agree on a new law to make the games exempt from New York’s gambling ban.

Daily fantasy sports, a turbocharged version of the season-long game, have developed over the past decade.

At the heart of the furor is the companies’ business plan: Customer pay an entry fee and can win cash based on the performance of actual players in games that take place that day or week.

Steiner brought the lawsuit on behalf of the state, and the Pinellas State Attorney’s Office entered an appearance in the case when it was in Pinellas County.

For the attorney general’s office, this is the first step towards shutting down the sites.

Mendez’s puts sports leagues such as the National Hockey League and Major League Baseball in a bind since they have invested in DraftKings.

In a seesaw contest of legal rulings, a trial court judge ruled Friday morning that the companies must temporarily close while they fight to prove they should not be banned under gambling laws.