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[h=1]DraftKings, FanDuel get booted from NY[/h] by Darrel Baker - at December 12, 2015
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After a few hours, the Appeals Court granted an emergency stay on the case, essentially providing the companies with temporary relief from the lower court's ruling.
"We will remain fully operational in New York", DraftKings attorney David Boies said in a statement.
The case only directly mentions them, and it's not immediately clear how the ruling might affect other companies in the industry.
New York Supreme Court Justice Manuel Mendez chose to grant Schneiderman's request for an injunction against the leading DFS sites, forcing them to stop offering games to New York State residents.
An appeals court judge allowed the companies to keep operating until additional judges have a chance to rule on the ban.
But until then, at least for now, it's business as usual.
In this photo taken on Tuesday, Dec. 1, 2015, an ad for daily fantasy sports operator DraftKings is displayed in a subway station in Philadelphia. Both have attracted big name investors and deals with professional sports leagues, not to mention they also rake in millions of dollars from fans who play on their sites.
In New York the sticking point was that it was deemed that people were risking
something of value and that is why it was deemed illegal today.
FanDuel said it is confident not only that the
fantasy sports sites will eventually prevail in court, but that there is support in the NY state legislature to change the law to explicitly allow
fantasy sports in the state. But in his decision, the judge says that Schneiderman has a better chance of winning than the fantasy sites do.
In New York, the chairman of a state legislative committee with authority over gambling predicted this week that the state will ultimately legalize and regulate daily
fantasy sports, regardless how the court fight turns out.
Attorneys for the DFS companies immediately appealed and were successful in obtaining a stay of the Supreme Court order.
FanDuel Inc., and DraftKings Inc. are battling in court with the state's attorney general over whether the games constitute illegal gambling.
Mendez drew on the gambling law's definition of "contest of chance", which says that the outcome turns "in a material degree" on chance, even if skill plays a role.
"This is only the beginning of the legal process", FanDuel said.
