FanDuel and DraftKings to remain operational in New York

The ongoing investigations into the legality of daily fantasy sports hit New York recently, with a ruling stating that neither DraftKings nor FanDuel would be allowed to conduct business in the state for the foreseeable future.

Despite this ruling though it has been announced that both companies will be allowed to remain operational in New York, for the time-being at ledraftkingsast.

On Friday, New York Supreme Justice Manuel Mendez granted a request for an injunction to block both companies operations in the state, as well as denying temporary retaining orders from them too.

The ruling focused on New York Penal Law section 225.00[1], whichdefines ‘Contest of Chance’ to mean “any contest, game, gaming scheme, or gaming device in which the outcome depends in a material degree upon an element of chance, notwithstanding that skill of the contestants mayfanduel also be a factor therein.”

DraftKings responded by gaining a motion to stay the ruling and in doing so gained the support of judge Paul Feinman.

As reported by ESPN both FanDuel and DraftKings will be allowed to operate in New York until at least January 4th at which point the legal battle will restart.

David Boies, counsel to DraftKings and Chairman of Boies, Schiller & Flexner, said this of the initial decision: “We are disappointed with the Court’s decision, and will immediately file an emergency notice of appeal in order to preserve the status quo.

“Daily fantasy sports contests have been played legally by New Yorkers for the past seven years and we believe this status quo should be maintained while the litigation plays out.”

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