DraftKings, FanDuel granted stay in NY as they await another ruling

A judge granted attorney general Eric T. Schneiderman’s preliminary injuctuion to shut down the operation of the daily fantasy sports sites.

The New York Appeals Court will allow DraftKings and FanDuel to continue business in the state as they await another ruling from the attorney general.

Earlier on Friday, New York Supreme Court Justice Manuel Mendez blocked popular daily fantasy sports companies FanDuel and DraftKings from offering contests in New York.

According to the court ruling, both companies were found in violation of New York State’s laws against gambling, granting attorney general Eric T. Schneiderman’s preliminary injunction to shut down operation of the daily fantasy sports sites.

The injunction was aimed at preventing New Yorkers from being able to place bets on FanDuel and DraftKings.

FanDuel has not been in the New York market since Nov. 17 but is allowing players in New York to start playing on its site again starting on Friday night, according to ESPN's Darren Rovell.

Schneiderman previously sent cease-and-desist letters to both companies. In their defense, the daily fantasy sports sites argued that their contests are games of skill, rather than games left up to chance. 

“We are disappointed with the Court’s decision, and will immediately file an emergency notice of appeal in order to preserve status quo,” said DraftKings’ lead attorney David Boies. “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.”

- Xandria James