DraftKings, FanDuel Sue Over New York BanCompanies Ask State Supreme Court To Intervene |
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DraftKings and FanDuel, the two largest daily fantasy sports sites, have each sued to prevent New York from banning them from doing business with Empire State residents.
On Tuesday, New York’s attorney general sent cease-and-desist letters to the companies, saying that their products violated anti-gambling laws in the state. The daily fantasy sports industry has no issue with federal law.
New York is one of seven states in the country that ban the contests. The problem for the daily fantasy sports industry is that New York is its largest market, according to a report from The New York Times. Company filings show that New York represents about 12.8 percent of the industry’s active users. DraftKings and FanDuel have a combined 1.1 million users in the Empire State.
The state has a population of roughly 19.75 million.
“Today, we have taken decisive legal action to prevent a unilateral, misinformed and legally misguided attempt by the New York Attorney General to act as ‘judge, jury and executioner’ for daily fantasy sports in New York," DraftKings said in a statement.
“We are asking the New York Supreme Court to rule that the Attorney General’s cease-and-desist letter is unconstitutional, an abuse of discretion, and simply wrong. We are confident in our legal position and intend to continue to fight to preserve the right of the over 500,000 New York consumers to play the fantasy sports games they love.”
Both companies want to keep offering games in New York while their suits play out.
Last month, Nevada told the sites that they had to stop serving Nevadans unless they receive a sports book license. Both companies complied.
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