DraftKings, FanDuel lose in effort to block New York

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DraftKings, FanDuel lose in effort to block New York shutdown



Efforts by the two biggest daily fantasy-sports companies to prevent New York’s attorney general from shuttering their operations in the state were shot down Monday.

DraftKings Inc. and FanDuel Inc. asked a state court to prevent New York Attorney General Eric Schneiderman from following through with a cease-and-desist order he sent to the businesses last week. A judge denied that request Monday. A court hearing on the matter is scheduled for Nov. 25.

The attorney general had demanded DraftKings and FanDuel shut down, saying daily fantasy games constitute illegal gambling and are subject to criminal penalties. Schneiderman called the companies, which dominate the daily-fantasy industry, “leaders of a massive, multibillion-dollar scheme intended to evade the law and fleece sports fans across the country.”

The two companies say they are legal games of skill and not gambling. They filed separate complaints in state Supreme Court in Manhattan asking Judge Manuel Mendez for a restraining order to hold off the attorney general until the court hearing. The companies argue the attorney general doesn’t have the authority to prevent New Yorkers from playing daily fantasy sports.

DraftKings, in a statement issued after the order, said the company “is confident in our legal position.” New York-based FanDuel declined to comment; on Friday, the company said it was no longer accepting new deposits from players in New York.

A spokesman for the attorney general said the office plans to file suit as soon as tomorrow against the companies, seeking to shut them down.
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