Today a panel of New York State Supreme Court appellate judges decided to extend the temporary stay that was recently granted to DraftKings and FanDuel, meaning they can legally operate in NY until their appeal is decided.
As a refresher, In December New York State Supreme Court Judge Manuel Mendez upheld a cease-and-desist request from New York Attorney General Eric T. Schneiderman, meaning DraftKings and FanDuel would have to cease operating in New York.
However, a few hours after that decision, DraftKings received an expediated motion to appeal and stay the decision, meaning both companies could temporarily continue to operate while the appeal is being considered.
Today’s decision extends that temporary ruling, meaning both companies can indefinitely operate in NYC until the appeal until decided.
In a statement from DraftKing’s counsel, the company reiterated that they expect the appeal to be decided in their favor, and consider today’s ruling a logical step in getting DFS legalized:
“We are pleased with the Court’s ruling today. Daily Fantasy Sports contests are as legal now as they have been for the past seven years that New Yorkers have been playing them. As our litigation continues, we expect an appellate court to see what we have known since the outset:
DFS is a game of knowledge and skill, one that builds community and whose competitive spirit has become important to the lives of millions of people. Our ongoing appeal will make clear that daily fantasy contests require just as much skill as season-long contests, which the Attorney General recognizes as perfectly legal under state law. – David Boies, counsel to DraftKings and Chairman, Boies, Schiller and Flexner LLP
Now, all parties must wait until the appeal is heard before the New York Supreme Court later this year. Until then, DraftKings and FanDuel live to fight another day in NY.