DFS update: FanDuel and DraftKings granted stay of injunction

y Fantasy Sports (DFS) operators FanDuel and DraftKings have been granted a stay of injunction by a New York appellate court.

Justice Manuel Mendez of the New York Supreme Court had granted an injunction to ban FanDuel and DraftKings from operating in the state on Friday morning.

The decision to grant a stay of injunction was issued hours later by a New York appellate court.

New York attorney general Eric Schneiderman made the request for an injunction against the operators in November, having ruled that DFS constitutes a game of chance under state law.

Although no specific date has been set, a panel of five judges from a New York appeals court will review the preliminary injunction and whether to continue the stay in January.

FanDuel indicated it will be resuming operations in New York, stating: “On behalf of our users in New York, we are pleased to report that this afternoon, an appellate court in New York granted our request for an emergency stay of the injunction issued this morning.

“Based on the appellate court’s ruling, New Yorkers can continue to enjoy FanDuel contests while the legal process moves forward.”

DraftKings attorney David Boies said: “This immediate stay was granted, so we will remain fully operational in New York.

“We look forward to a full and fair hearing and are confident we will demonstrate clearly to the court why we should be able to continue to offer our DFS games in New York permanently.”