DraftKings, FanDuel file lawsuits to prevent shutdown in New York

FanDuel and DraftKings have filed lawsuits against New York Attorney General Eric Schneiderman to prevent a shutdown in New York, the companies said in statements on Friday.

FanDuel and DraftKings have filed lawsuits against New York Attorney General Eric Schneiderman to avoid a shutdown of their websites in New York, the companies said in statements on Friday.

“Today, we have taken decisive legal action to prevent a unilateral, misinformed and legally misguided attempt by the New York attorney general to act as ‘judge, jury, and executioner’ for daily fantasy sports in New York,” DraftKings said in the statement.

On Tuesday, Schneiderman ordered FanDuel and DraftKings to stop accepting bets in New York, ruling that the daily fantasy sports games are in violation of the state’s gambling laws.

However, the two companies have argued that skill is involved in the setting of lineups on the sites, which they believe should exempt them from classification as gambling games.

“Such a shutdown would deprive hundreds of thousands of subscribing New Yorkers of the opportunity to pit their skills against the skills of others in selecting a ‘fantasy’ team of athletes from different sports teams and competing in contests offering prizes to the players whose fantasy teams perform best,” FanDuel said.

Hours before news of the lawsuit, a few hundred people gathered outside the Attorney General’s office to protest his ruling.

- Kenny Ducey