Fantasy sports sites allowed to operate in New York during appeal
Source: Reuters
US | Mon Jan 11, 2016 3:03pm EST
Fantasy sports sites allowed to operate in New York during appeal
NEW YORK
An appeals court has granted a request by leading daily fantasy sports companies FanDuel and DraftKings to keep operating in New York indefinitely while they battle the state's attorney general, who wants them shut down in the state, a lawyer for DraftKings said on Monday.
The move allows the companies to keep operating during an appeal of a civil action initiated by New York Attorney General Eric Schneiderman in November, a potentially extensive process.
A panel of New York State Appeals Court judges on Friday had extended the temporary stay of an injunction granted by a New York state trial court on Dec. 11.
"Daily fantasy sports contests are as legal now as they have been for the past seven years that New Yorkers have been playing them," David Boies, a DraftKings attorney, said in a statement.
The long-term stay is a bright spot amid mounting legal troubles for FanDuel and DraftKings, whose daily fantasy sports businesses have now been deemed illegal gambling in three states. Class-action lawsuits against the two companies, filed by daily fantasy sports players who claimed to have lost money because of the sites' illegal operations, are also piling up.
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