Friday morning the daily fantasy sports industry was knocked down in their bout against New York Attorney General Eric Schneiderman but by late afternoon an appellate court granted a stay allowing DraftKings and FanDuel to win the round.
New York Supreme Court Justice Manuel Mendez decided to grant Schneiderman’s request for an injunction against the leading DFS sites, forcing them to stop offering games to New York State residents.
In his ruling (Read it Here), Mendez states, “The balancing of the equities are in favor of the NYAG and the State of New York due to their interest in protecting the public, particularly those with gambling additions. FanDuel, Inc. and DraftKings, Inc., are only enjoined and restrained in the State of New York, DFS is permitted in other states, and the protection of the general public outweighs any potential loss of business.”
DraftKings immediately filed for and received a stay order from an appellate court to remain operational in New York, which accounts for about 12% of their total players.