Hey New York, you can play DraftKings and FanDuel again…for now
DraftKings and FanDuel both received some positive news in their battle to resume daily fantasy sports operations in the State of New York.
Fantasy sports players in the State of New York have a new reason to rejoice. On Monday, a New York judge granted DraftKings and FanDuel both permanent stays and the two companies will be allowed to resume play in the State of New York until all trials and appeals are exhausted, according to SB Nation.
The two daily fantasy sports services had their operations terminated within the State of New York in early November after the New York attorney general Eric Schneiderman declared that it constituted illegal gambling. Since that time, the two sides have been fighting viciously in court to have the services shut down while awaiting trial.
Seen as a huge blow to the fantasy sports industry at the time, the two parties must nonetheless be ecstatic about their win. Given that 12.8% of their users reside in New York, that is a huge potential loss for both companies and could cripple the industry, especially if it emboldens other states to follow suit.
By receiving a stay, both FanDuel and DraftKings may resume operations in the state. However, the fight is still not over, as the two parties will still need to prove that the game is not a form of illegal gambling. However, the attorney for DraftKings seems to feel that his clients will prove that the game is skill based and not gambling.
"“We are pleased with the Court’s ruling today,” DraftKings attorney David Boies said in a statement. “Daily Fantasy Sports contests are as legal now as they have been for the past seven years that New Yorkers have been playing them. As our litigation continues, we expect an appellate court to see what we have known since the outset: DFS is a game of knowledge and skill, one that builds community and whose competitive spirit has become important to the lives of millions of people.” (h/t SB Nation)"
The stay will at least guarantee that both services do not suffer irreparable damages while fighting the battle in court. Shutting down the service in New York could have been a big blow to DraftKings and FanDuel, but could also come back to cost taxpayers in New York a significant chunk of change should the judgment be reversed.
Not the onus is on DraftKings and FanDuel to prove without a shadow of a doubt that the two are games of skill. That may be a steep challenge, but there is a lot of interest riding on that decision.