New York Daily Fantasy Update: DraftKings, FanDuel Allowed To Operate After Temporary Stay Granted

An appeals court judge Friday ruled that New Yorkers could continue participating in games on the daily fantasy sports websites DraftKings and FanDuel, ESPN reported. The emergency stay, likely to last only through year's end, came just hours after New York state Attorney General Eric Schneiderman was granted a temporary injunction to stop the websites from accepting entries in the state.

“Fantasy sports teaches us that you’re only as good as the team around you, and we are, as always, honored to have you on our team,” FanDuel wrote on its website to its users. “We will always have your back, and we appreciate you having ours.”

Schneiderman has claimed that the sites offer illegal gambling as defined by New York’s definition of gambling, but the sites have said those who use the site couldn’t have broken the law because they didn’t make bets, they paid entry fees. FanDuel and DraftKings have both said they offer games of chance, not skill, but Schneiderman has challenged that.

The sites will eventually have to go before a panel of appellate judges to continue to operate. “We look forward to a full and fair hearing and are confident we will demonstrate clearly to the Court why we should be able to continue to offer our DFS games in New York permanently,” DraftKings said in a statement.

“We are encouraged by our dialogue this week with New York state legislators. We look forward to continuing that conversation,” the statement went on to say.

Two bills were introduced Friday in the New York Assembly to make daily fantasy sports legal in the state, ESPN reported. One bill would make daily fantasy sports not considered a game of chance, while the other would amend a state constitution article and require the repeal or amending of the federal ban on sports betting, the Professional and Amateur Sports Protection Act.