FanDuel, DraftKings can do business in NY after winning stay in court

FILE - In this Oct. 25, 2015, photo, workers set up a DraftKings promotions tent in the parking lot of Gillette Stadium, in Foxborough, Mass., before an NFL football game between the New England Patriots and New York Jets. (AP Photo/Charles Krupa, File)

NEW YORK, N.Y. (WIVB) — A victory in court for daily fantasy sports companies will allow big names like FanDuel and DraftKings to operate in the state for the foreseeable future.

An appellate panel of New York State’s Supreme Court granted a permanent injunction against the efforts of Attorney General Eric T. Schneiderman, who has worked to declare daily fantasy sports as illegal in New York.

Both FanDuel and Draft Kings had received cease and desist orders from Schneiderman, forcing them to stop operating in New York State to avoid prosecution. Other fantasy sports websites followed suit. Now they’ll be allowed to open their paid services up again to New Yorkers.

“We are pleased with the court’s ruling today,” DraftKings attorney David Boies said in an email release. “Daily Fantasy Sports contests are as legal now as they have been for the past seven years that New Yorkers have been playing them.”

Boies said the fight in New York State isn’t over yet, as there has been no final ruling.

“As our litigation continues, we expect an appellate court to see what we have known since the outset: Daily Fantasy Sports is a game of knowledge and Skill,” Boies said.

Those who participate in daily fantasy sports pay funds for a short term game in which they hire a roster of players and can defeat other players based on the performance of those players they hired. The entire basis of the case hinged on whether or not daily fantasy sports are skill or chance-based.

Schneiderman continues to believe daily fantasy sports are a game of chance, but it will come down to a court to decide.

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