DFS Sites Allowed To Stay Open In New YorkDraftKings, FanDuel Will Continue Business In Empire State For Now |
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The two leading DFS sites can continue doing business in New York cyberspace while they appeal the state’s attempt to shut them down to the New York Supreme Court, an appellate panel said Monday.
FanDuel and DraftKings will be allowed to take action from New York residents in the months leading up to their May date in the state Supreme Court, according to a report from ESPN. Late last year, a New York Supreme Court Justice sided with New York Attorney General Eric Schneiderman and ordered the sites to exit New York immediately. However, the DFS companies were soon thereafter granted an emergency stay. Monday’s ruling is a permanent stay.
The Empire State, which has 19.75 million residents, represents nearly 13 percent of the active users for the two companies, according to company filings.
The ruling comes as New York’s legislature considers regulating fantasy sports. If such a bill passes, it would likely spell the end of the legal battle between the sites and the state’s attorney general, according to ESPN.
“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,” New York-based FanDuel said in a statement. “We are confident that fantasy sports have always operated lawfully in New York, but we do believe that new, common-sense regulations to protect consumers and reflect the evolution and growth of the game are needed. The New York legislature, like many states around the country, is working towards such regulation, and we will work with them to achieve it.”
DraftKings also issued a statement following the decision:
“We are pleased with the court’s ruling today. Daily fantasy sports contests are as legal now as they have been for the past seven years that New Yorkers have been playing them. As our litigation continues, we expect an appellate court to see what we have known since the outset: DFS is a game of knowledge and skill, one that builds community and whose competitive spirit has become important to the lives of millions of people. Our ongoing appeal will make clear that daily fantasy contests require just as much skill as season-long contests, which the Attorney General recognizes as perfectly legal under state law."
New York’s scrutiny on the DFS industry comes as it is preparing to see three new Las Vegas-style casinos. The state handed out three licenses in December.
New York also considered online poker regulation last year. A vote wasn’t held at a hearing last year, but the public discussion was favorable to online poker. Testimony indicated that online casino games are likely years away and would come after the new casinos are built. The state’s online poker market could be as much as $120 million after the first year.
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