You HAD to know this was coming…..
DraftKings Inc. in particular has been agressive in challanging the order from New York State AG Eric Schneiderman to cease and desist from running their online betting services in his state….
DraftKings and FanDuel at the traget of the New York Attorney General effort’s to classify their actions as gambling , which comes under the reglation of the state…
The shut downs will cost the two outfits TONS of money….
Judge Manuel Mendez’s order came at the request of New York Attorney General Eric Schneiderman, who contends that daily fantasy sports contests for cash are a form of gambling outlawed by state law and should be shut down.
DraftKings’ attorney David Boies said the company would immediately appeal the shutdown order.
“We are disappointed with the Court’s decision, and will immediately file an emergency notice of appeal in order to preserve the status quo,” Boies said in a statement. “Daily Fantasy Sports contests have been played legally by New Yorkers for the past seven years and we believe this status quo should be maintained while the litigation plays out.”
In his ruling granting Schneiderman’s request, Mendez said the balance of interests favored Schneiderman and the state “due to their interest in protecting the public, particularly those with gambling addictions.”
“The protection of the general public outweighs any potential loss of business,” Mendez wrote…..
DraftKings has raised more than $600 million since launching its fantasy games in 2012. Its investors include Fox Sports, Major League Baseball, the NHL, and the owners of the New York Knicks, New York Rangers, Boston financial giant Wellington Management, and the owners of the New England Patriots and Dallas Cowboys….
An Appellate Division judge late Friday allowed Boston-based DraftKings to continue running its controversial daily fantasy sports contests in New York, temporarily freezing a shutdown order from a lower court judge earlier in the day…..
The emergency reprieve — in effect until at least Jan. 4 — could, for the moment, help DraftKings soothe growing jitters among the financial firms that handle money for the company and provide the lifeblood of its business. But it did little to ease the fears of avid daily fantasy players, who sense that momentum in the legal battle over the games has turned against them and the industry….