FANDUEL AND DRAFTKINGS EXIT NEW YORK (Update)

Agreement reached with State Attorney General.

Daily fantasy sports companies DraftKings and FanDuel will cease real-money fantasy sports offers to residents within New York State after reaching an agreement with New York State Attorney General Eric T. Schneiderman that will see a halt in operations in return for an expedited path to resolve pending litigation.

“As I've said from the start, my job is to enforce the  law, and starting today, DraftKings and FanDuel will abide by it,” Schneiderman said in a press statement Monday.  “Today's agreement also creates an expedited path to resolve this litigation should that law change or upon a decision by the appellate division.  Regardless, our key claims against the companies for false advertising and consumer fraud are not affected by the agreement and will continue.”

DraftKings simply confirmed the development saying: “We will continue to work with state lawmakers to enact fantasy sports legalization so that New Yorkers can play the fantasy games they love.”

“New York is a critical state for FanDuel,” reads a statement on FanDuel’s website. “FanDuel is headquartered in Manhattan, where we employ more than 170 young, smart, passionate fans who are committed to innovating and providing the best fantasy experience possible.

“We are proud to be one of New York’s largest startup companies, and while it is disheartening for us to restrict access to paid contests in our home state, we believe this is in the best interest of our company, the fantasy industry and our players while we continue to pursue legal clarity in New York.”