New York temporary injunction ordered against DraftKings and Fanduel

New York Attorney General Eric Schneiderman has been successful in his quest for a temporary injunction restraining DraftKings from operating in New York until such time as the question of daily fantasy sports legality has been decided.

Following over a week of consideration, New York Supreme Court judge Manuel J. Mendez ruled Friday that DraftKings and FanDuel, two of the fantasy sports market’s leading websites, must stop doing business in New York while courts determine whether DFS activity constitutes online gambling, which is currently banned in the state.

DFS operators claim that their activity is based on skill rather than chance and further is exempted from banning laws through the Unlawful Internet Gambling Enforcement Act.

Schneiderman contests this viewpoint, saying that unlike the season-long competition played mostly for bragging rights or side wagers and covered by UIGEA, modern daily fantasy sports run a casino-style gambling operations where online punters can wager upwards of $10,000 per ‘line-up’ and enter for a chance to win jackpots of up to $1 million.

Judge Mendez’s order is referenced 453056/2015.