FanDuel, DraftKings can operate in NY for now

FanDuel spokeswoman Justine Sacco and DraftKings spokeswoman Sabrina Macias didn’t immediately respond to e-mails seeking comment. New York Supreme Court Justice Manuel Mendez disagrees, and on Friday barred the companies from operating in New York. “Many of their own personnel may well be in violation of their own anti-gambling policies if they are playing daily fantasy in New York State because we now have an official ruling that defines daily fantasy as gambling in this jurisdiction”. A number of issues became very clear in court: first, the outcome of fantasy sports contests are determined by skill, not chance. “(The judge) was affronted by their deceptive use of language like calling every game “winnable” regardless of your skill level”.

“Unlike traditional fantasy sports, (daily fantasy sports) is designed for instant gratification, stressing easy game play and no long-term strategy”, Schneiderman’s office said in its cease-and-desist letter in November. FanDuel said it is confident not only that the fantasy sports sites will eventually prevail in court, but that there is support in the NY state legislature to change the law to explicitly allow fantasy sports in the state. The two sites then sued the attorney general, calling the move to kick them out of the state a “shocking overreach” that was “unwarranted by the facts and unbecoming of a public official”. At the conclusion of the hearing, Judge Mendez decided not to rule at the time, saying they would have his decision shortly, which led to rampant speculation and opinions over which way he was leaning.

“We are disappointed with the Court’s decision, and have filed a notice of appeal and an expedited motion to stay the Court’s decision, pending our appeal, in order to preserve the status quo”.

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

In Washington, the gambling commission specifically concluded that fantasy sports wagering is illegal.

“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 two firms shut down operations in Nevada following a similar investigation.

Massachusetts Attorney General Maura Healey has proposed mandating that daily fantasy players be at least 21 years old, as well as requirements for stronger data protection and that no competitions will center on college sports.