Tags: new york | draftkings | fanduel | shut down | judge

New York DraftKings, FanDuel Ruling: Injunction Granted, Sites Shut Down

Image: New York DraftKings, FanDuel Ruling: Injunction Granted, Sites Shut Down
The fantasy sports website DraftKings is shown on October 16, 2015 in Chicago, Illinois. (Photo illustration by Scott Olson/Getty Images)

By    |   Friday, 11 Dec 2015 02:51 PM

A New York judge effectively shut down DraftKings, FanDuel, and other fantasy sports companies operating in the state, granting an injunction sought by the New York attorney general.

New York Supreme Court Justice Manuel Mendez granted the injunction sought by AG Eric Schneiderman, who said the daily fantasy sports games are illegal.

"We are pleased with the decision, consistent with our view that DraftKings and FanDuel are operating illegal gambling operations in clear violation of New York law," Schneiderman said in a press release.

A DraftKings attorney told Reuters that the company plans to file for a stay of the decision and appeal the decision. DraftKings and FanDuel have both said they operate games of skill rather than chance.

According to a September article in Fortune magazine, these fantasy sports companies operate in 44 states, and laws vary as to the definition between games of skill and chance.

"In Kansas, for example, a contest must prove only that it involves more skill than chance. New York is far tougher: The contest must have no 'material amount' of chance," Fortune writer Daniel Roberts said. "The bar is even higher in Tennessee and Arkansas, where a game of skill must involve no chance whatsoever."

The skill argument is iffy, Roberts said. Participants and the companies argue that knowing the sports team and the athletes well is necessary for playing fantasy sports. But Roberts said that same argument could be made of horse racing — if you study the horses and jockeys well, is it still a game of chance?

The news upset some people, who spoke out online:



The Boston Globe said PayPal announced Friday it would immediately suspend DraftKings and other fantasy sports payments in New York to comply with the decision.

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A New York judge effectively shut down DraftKings, FanDuel, and other fantasy sports companies operating in the state, granting an injunction sought by the New York attorney general.
new york, draftkings, fanduel, shut down, judge
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2015-51-11
Friday, 11 Dec 2015 02:51 PM
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