DFS giants banned in New York

DFS giants banned in New York

Friday, December 11, 2015 Totally Gaming
DraftKings said it would launch an emergency appeal after the ruling

DraftKings and FanDuel are set to launch emergency appeals after a New York court found in favour of the state Attorney General’s preliminary injunction against them.

The daily fantasy sports (DFS) operators must now comply with Eric Schneiderman’s cease and desist order, handed out in November as he ruled the sector to be gambling rather than a legal ‘game of skill’.

New York Supreme Court Justice Manuel J Mendez granted the Attorney General’s motion to ban DraftKings and FanDuel “from doing business in the State of New York, accepting entry fees, wagers or bets from New York consumers in regards to any competition, game or contest run on” their websites.

The decision comes ahead of a full hearing in 2016, but the DFS operators’ failure to convince Judge Mendez may be seen as a sign that they will be unsuccessful in continuing operations in a state that accounts for around 10 per cent of the DFS market.

“We are disappointed with the court’s decision, and will immediately file an emergency notice of appeal  in order to preserve the status quo,” said David Boies, counsel to DraftKings and chairman of Boies, Schiller & Flexner.

“Daily 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.”

FanDuel and DraftKings each relied on a case, Humphrey v. Viacom, decided in New Jersey as grounds for why the motion for preliminary injunction should be denied. The New York court did not find the case to have any application within the borders of New York and Judge Mendez said it was “unpersuasive and distinguishable from the matters at hand” as it referred to season-long game fantasy contests.

Speaking after the decision, Schneiderman said: “We are pleased with the decision, consistent with our view that DraftKings and FanDuel are operating illegal gambling operations in clear violation of New York law. 

“I have said from the beginning that my job is to enforce the law, and that is what happened today.”

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