Judge Promises Ruling Soon on DraftKings, FanDuel Battle in New York

A ruling is expected in the next few weeks on whether fantasy sports companies DraftKings and FanDuel will remain in business in New York state following a hearing Wednesday in New York Supreme Court.

At the end of a lengthy hearing, Judge Manuel Mendez said he would issue a decision “very soon” on the state attorney general’s bid to shut down the betting operations of both companies before the state’s lawsuit goes to trial next year, according to published reports.

There was speculation after the hearing that Mendez’s move to reserve his decision on the state’s request for a preliminary injunction indicated he was leaning toward allowing the companies to keep operating. Prominent litigator David Boies is among the lawyers representing DraftKings.

“We were glad to have the opportunity to make our case to the court that DraftKings and FanDuel are operating illegal gambling operations in clear violation of the law, and we await the judge’s decision,” said Damien LaVera, a spokesman for Schneiderman.

Schneiderman filed suit against DraftKings and FanDuel earlier this month, asserting that the companies violate the state’s law against gambling on sports. The companies have argued that the daily fantasy sports games they operate are games of skill, not games of chance, and thus are legal under New York law.

The legal battle in New York is the highest-profile case amid growing efforts by states to regulate or ban fantasy sports betting that can reach as high as seven-figure payouts for some players. Advertising for FanDuel and DraftKings in recent years have become ubiquitous on the web, and more recently on local TV in New York state.

 

 

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