DraftKings will continue to offer daily fantasy sports (DFS) in Illinois for the time being after reaching an agreement with the office of state attorney general Lisa Madigan.
The firms responded by filing a complaint against Madigan on Christmas Eve, requesting an injunction to prevent her from shutting them down.
Cook County Circuit Court has since confirmed that the opposing parties have now set court dates and agreed not to take any further action "concerning the legality of daily fantasy sports contests that Plaintiff offers in Illinois, except before this Court".
Madigan's office will respond to the complaint by 22 January, with all pre-trial proceedings completed by 28 April.
If necessary, a trial would then take place around 27 June.
ESPN.com reports that FanDuel and Madigan's office are also in discussions regarding a similar arrangement.
"We are pleased that we have reached agreement with the Illinois Attorney General's Office today on an expedited court schedule for determining the legality of the daily fantasy sports contests that DraftKings is offering in Illinois," said Randy Mastro, counsel to DraftKings and partner at Gibson Dunn & Crutcher.
"We remain committed to providing DFS to the hundreds of thousands of loyal Illinois fans who love the game, and we look forward to our day in court, where we are confident we will prevail."
Illinois state Rep. Michael J. Zalewski introduced a bill to legalise and regulate DFS in Illinois back in October and told ESPN.com he hopes to get it passed by the end of the 2016 legislative session in May.
Meanwhile a Missouri lawmaker has proposed a bill to legalise daily fantasy sports in the state.
HB 1941, sponsored by state Rep. Scott Fitzpatrick, would confirm that operating a fantasy contest is legal under Missouri law.