FanDuel and DraftKings score major victory in New York
Appeals Court says operators can continue to offer contests to players until Supreme Court ruling
FanDuel and DraftKings have scored a major victory in their ongoing legal battle with the New York Attorney General after a court yesterday granted a permanent stay against an earlier injunction barring them from conducting business in the state. [private]
The stay was granted by a panel of four judges from the Appellate Division of the New York State Supreme Court, and means both operators can continue offering contests to players at least until the case is heard by the Supreme Court.
A date has yet to be set for the hearing, but media reports suggest it will take place sometime in the Spring. In the meantime, a number of bills seeking to legalize DFS have been introduced to the legislature with an informational hearing taking place last month.
âWe are confident that fantasy sports have always operated lawfully in New York, but we do believe that new, common-sense regulations to protect consumers and reflect the evolution and growth of the game are needed,â FanDuel said in a statement.
Rivals DraftKings said it was pleased with the courtâs ruling and that its litigation continues. âOur ongoing appeal will make clear that DFS contests require just as much skill as season-long contests, which the Attorney General recognizes as perfectly legal under state law,â the firm said.
âWe are engaged with legislatures and Attorney Generals across the country, including in New York, to ensure that our fans are able to experience our contests in a fun and fair way with appropriate and thoughtful consumer protections in place.â
The operator said part of that process included âactive collaborationâ with the Attorney General in Massachusetts, where today (Tuesday)Â a meeting was held to discuss proposed regulations aimed at providing greater scrutiny and improving player protection measures.
The state also released a White Paper on the legal and regulatory challenges of DFS, and concluded that there was âsome urgencyâ for the state legislature to tackle the issue. âPrompt clarification of the law is highly desirable for citizens, players, and operators alike,â the report stated.