Leading US daily fantasy sports operators DraftKings and FanDuel were dealt a major blow on Friday when New York state Supreme Court judge Manuel Mendez temporarily barred both sites from operating in the state.
Mendez ruled that the sites should be prohibited from operating in New York until “a final determination” of the ongoing court battle. The ruling itself does not adjudge DFS to be illegal.
An appeal court later enabled DraftKings to keep operating for the time being, perhaps until January and the end of the regular NFL season, which represents the biggest DFS market in the US.
Although FanDuel also appealed the Supreme Court ruling, the operator was already suspended from operating in the state.
“We look forward to a full and fair hearing and are confident we will demonstrate clearly to the court why we should be able to continue to offer our DFS games in New York permanently,” said DraftKings lawyer David Boies in a statement.
The operators argue that their DFS games are competitive skill-based contests while the New York attorney general Eric Schneiderman has said that although there is some skill involved, the outcome relies on events beyond the control of the DFS player.
