FanDuel and DraftKings forced out of New York
State judge rules in favor of Attorney General Eric Schneiderman and grants temporary restraining order blocking operators from the state
FanDuel and DraftKings have been told they must shut down their sites in New York after a state judge granted a temporary restraining order requested by the stateâs Attorney General Eric Schneiderman. [private]
Judge Manuel Mendez today ruled in favor of the AG, who is trying to permanently block daily fantasy sports operators from the state after ruling the activity met the definition of illegal gambling under New York law.
In a statement, DraftKings said it was disappointed with the ruling and will immediately file for an emergency notice of appeal in order to âpreserve the status quoâ.
âDaily Fantasy Sports contests have been played legally by New Yorkers for the past seven years and we believe this status quo should be maintained while the litigation plays out,â the operator said.
In his ruling, Mendez said fees paid by DFS players to enter contests âcould certainly be deemed risking something of valueâ and therefore the activity meets the definition of gambling.
âThe language of Penal Law 225.00 is broadly worded and as currently written sufficient for finding that DFS involves illegal gambling,â the ruling stated.
Mendez also said the carve-out in the Unlawful Internet Gambling Enforcement Act used by DFS operators to offer contests in the US âhas no corresponding authority under New York State lawâ.
It would appear that FanDuel and DraftKings now have 30 days to cease operating in the state, although FanDuel has already withdrawn from the market.
Mendezâs ruling comes just weeks after a hearing was held to discuss the escalating legal battle between Schneiderman and FanDuel and DraftKings.
The hearing came after Schneiderman issued cease and desist orders to FanDuel and DraftKings early November following his ruling that DFS was âillegal gamblingâ under state law.
Both operators subsequently filed lawsuits against the AG, who in turn filed for an injunction against the pair seeking to block them from operating in the state.
Mendez refused to give an immediate ruling following the hearing, leaving both operators in limbo until he made his announcement this morning.