Watch John Oliver go after FanDuel, brought to you by FanDuel
DraftKings and FanDuel continue to fight for their lives in New York and are now asking the New York Supreme Court to allow them to continue operating in the state until they resolve their lawsuits against the New York Attorney General.
Fan Duel, which has 5 percent of its customers in NY, said (PDF) online fantasy sports betting does “not meet the definition of “gambling” under NY law because they are games of skill, not chance, and because entry fees to participate in DFS contests are not bets or wagers”. It turns out that there’s a tiny percentage of FanDuel and DraftKings players who are using sophisticated algorithms to help them draft consistently superior teams.
However, Schneiderman’s office strongly disputed that characterization.
But in a 45-page filing, DraftKings accused Schneiderman, a Democrat, of trying to “banish” the company from NY without providing it with enough time to adequately defend itself.
Schneiderman has argued the games constitute illegal gambling in NY, and both companies have sued Schneiderman in an attempt to block his order.
Schneiderman’s argument tries to draw a distinction between traditional fantasy sports, which have been popular since the 1980s, and daily fantasy sports, which are a more recent phenomenon. “This bill further protects the rights of businesses and individuals who wish to engage in this type of commerce in the state of NY”.
DraftKings was seeking an order from a judge to stop AG Eric Schneiderman from shutting down its business in NY.
Disclosure: SB Nation has a partnership with FanDuel to produce content about daily fantasy sports and advertise their games.
As The Post’s Carl Campanile reported Monday, Schneiderman has taken in over $150,000 from gambling interests dating to his 2010 run for attorney general.
He said: I hope no-one from Amayas here, but theyre basically saying theyre withdrawing from states where they didnt have business anyway..
Investors have poured almost $1 billion into DraftKings and FanDuel alone. Last session, lawmakers in Texas discussed banning the operation of daily fantasy sports websites altogether.
“I’m not easily shocked, but this has been a shocking, irresponsible, irrational and illegal rush to judgment”, DraftKings lawyer Randy Mastro said in court.