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Stay of injunction granted for DFS operators remains

The

DFS
stay of injunction that has allowed FanDuel and DraftKings to continue operating in New York will continue pending the result of a legal battle against the state’s attorney general (AG).

An appellate court granted a temporary stay of a preliminary injunction against the daily fantasy sports (DFS) operators in December after New York Supreme Court Justice Manuel Mendez granted AG Eric Schneiderman’s request for an injunction to ban them from the state.

Zach Zagger, a reporter for Sports Law360, tweeted an image of the appellate division’s ruling, which read: “Upon reading and filing the papers with respect to the motions, and due deliberation having been had thereon, it is ordered that the motions are granted to the extent of staying the order on condition that the appeals be perfected for the May 2016 term.”

Schneiderman’s office sent letters to both companies asking them to “cease and desist” from New York in November after ruling that DFS classes as illegal gambling under state law.

Both FanDuel and DraftKings filed temporary restraining orders against potential action, and while FanDuel decided to pull its services from New York while the case is ongoing, DraftKings did not.

The full decision will be filed to the court next week, according to ESPN.

FanDuel said in response to the ruling: “We are grateful for the legions of New York fantasy sports players that the permanent stay entered today ensures they can continue to participate in our games here as the case progresses.

“The New York legislature, like many states around the country, is working towards such regulation, and we will work with them to achieve it.”

David Boies, counsel for DraftKings, said: “Daily fantasy sports contests are as legal now as they have been for the past seven years that New Yorkers have been playing them.”

Damien LaVera, communications director for Schneiderman, issued this response: “Having already obtained a preliminary injunction against these companies, we look forward to demonstrating to the appellate division that the trial judge was correct. DraftKings and FanDuel are indeed operating illegal gambling operations in New York and should be permanently barred from doing business in New York.”
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