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NY Allows DraftKings and FanDuel to continue operating
Tuesday January 12,2016 : ROUND ONE TO DAILY FANTASY SPORTS FIRMS IN NEW YORK DISPUTE (Update)
State Appellate panel allows DraftKings and FanDuel to continue operating pending judicial outcome.
There was good news for daily fantasy sports companies FanDuel and DraftKings Monday, when a panel of the New York Appellate Court set aside a temporary injunction against them imposed by a lower court, allowing them to continue operating until
the issue is finally decided in court.
Our readers will recall that the DFS companies' roubles in New York began late last year when state Attorney General Eric Schneiderman opined that their operations constituted gambling and issued a cease and desist order. The companies ignored the order and the AG applied for, and achieved, a temporary injunction against the firms from a state Superior Court judge.
The DFS companies responded by asking for an urgent and temporary stay on the injunction, which was granted pending an Appellate panel hearing, which has now allowed the companies to continue operating pending a final resolution of the legality issue.
It may be some months before a final court ruling on the issue is handed down, and in the meantime legislative efforts regulating DFS could overtake the judicial process.
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