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New York Judge Strikes DraftKings and FanDuel
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Summary: A New York Judge has granted injunctions against Draftkings and FanDuel.

After nearly a decade of unregulated success as sports fantasy businesses, DraftKings and FanDuel are facing legal troubles. A New York judge granted the state’s attorney general the injunction to bar them in New York, and this because they resemble traditional sports gambling, rather than the sorts of fantasy sports games that have been around for decades.


Under Executive Law, New York Attorney General Eric Schneiderman established “the likelihood of success warranting injunction relief, and under General Business Law, to avoid “fraudulent or illegal acts.”

Justice Manuel Mendez released two rulings Friday in New York Supreme Court, saying, “The NYAG has a greater likelihood of success on the merits under the New York State Constitution, and the definitions of gambling and ‘contests of chance’ as currently stated in Penal Law.”

According to the two fantasy companies, they offer legal games of skill, and not chance. This has come into question, as “Unlike traditional fantasy sports, [daily fantasy sports] is designed for instant gratification, stressing easy game play and no long-term strategy,” as Schneiderman’s office said in November’s cease-and-desist letter.

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The two companies came into the New York’s scope after they heavily advertised themselves at the beginning of the NFL season, speaking of how readily regular fans could win big cash jackpots each week. Further, a DraftKings employee won $350,000 on a FanDuel contest, which had earmarks of insider trading.

Source: USAToday



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