Are you tired of seeing DraftKings and FanDual commercials every Sunday? Maybe you should consider moving to New York. Today Justice Manuel Mendez allowed a preliminary injunction to New York Attorney General Eric Schneiderman that stops DraftKings and FanDuel from operating in the state.
When it comes to daily fantasy there is a big gray area. Their critics argue that they are legal gambling sites DraftKings and FanDual argue that it is just simply fantasy football that fans can play. Both sites argue that they are not gambling sites because they receive entry fees from players and not wagers.
In New York Justice Mendez deemed that people were risking something of value and that is why it was deemed illegal today. An appeal will be heard later today and if it is denied then both sites will not be able to accept customers from the state.
Draft Kings issued a statement earlier today.
“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.”
FanDuel also had to put their two cents in as well,
“This is only the beginning of the legal process and, perhaps more importantly, the New York legislature is already moving forward on action to ensure our game remains legal and is regulated, which we strongly support. The court specifically noted that this was not a final determination of the issue and that discovery would be needed to fully resolve the legal question, which we think should be decided in our favor when all of the evidence is in.”
What makes this really interesting is that the NBA owns equity in FanDuel. Major League Baseball and the NHL both have equity in DraftKings. The NFL has stayed neutral but do take advertising revenue from DraftKings and FanDual, as you can see every weekend. Should they not win their appeal this will affect fans of the Rangers, Islanders, Mets, Yankess, Knicks, Nets, Giants and Jets.
Stay tuned this will affect other states like Texas, California, Florida, New Jersey and Pennsylvania where daily fantasy sites are very popular.