Top daily fantasy sports operators DraftKings and FanDuel have been permitted to continue their operations in New York following a State Supreme Court ruling allowing for an extension of the companies' temporary stay until their appeal is heard in the said court.
To recapitulate, New York State Supreme Court Judge Manuel Mendez issued a cease-and-desist order in December, prohibiting DraftKings and FanDuel to operate in the state, Tech Crunch noted. A few hours after the decision was rendered, DraftKings were given notice of an expedited motion to appeal and stay the decision, thus granting the companies to resume their operations while their appeal is pending in court.
The recent Supreme Court decision extends the provision of that same motion until the appeal is heard and decided on.
"We are grateful for the legions of New York fantasy sports players that the permanent stay entered today ensures they can continue to participate in our games here as the case progresses," FanDuel said. "We are confident that fantasy sports have always operated lawfully in New York, but we do believe that new, common-sense regulations to protect consumers and reflect the evolution and growth of the game are needed. The New York legislature, like many states around the country, is working towards such regulation, and we will work with them to achieve it."
DraftKing's legal counsel, David Boies, is hopeful that the appellate court will rule in their favor.
"As our litigation continues, we expect an appellate court to see what we have known since the outset: DFS is a game of knowledge and skill, one that builds community and whose competitive spirit has become important to the lives of millions of people," Boies said. "Our ongoing appeal will make clear that daily fantasy contests require just as much skill as season-long contests, which the Attorney General recognizes as perfectly legal under state law."
The next step for the companies would be a hearing presided by the Supreme Court on the merits of the case. The hearing will likely commence in spring.
According to The Verge, New York's Attorney General Eric Schneiderman filed the case against the fantasy-sports company, arguing that the sites are operating as illegal gambling institutions.
Following the court's decision Monday, Schneiderman maintained his position, emphasizing that DraftsKing and FanDuel "should be permanently barred from doing business in New York."
Schneiderman also seeks to demand compensation for New York-based players who lost their money on the betting sites, an amount which could rise to $4 billion.
