Court rules that DraftKings and FanDuel can stay open in New York for now

An appellate panel has ruled in favour of daily fantasy sports sites DraftKings and FanDuel, allowing both to continue operating in the state of New York while their appeal is being heard, according to Darren Rovell of ESPN.

The sites are currently appealing a ruling by the New York Attorney General Eric Schneiderman who said daily fantasy sports is a form of gambling. Schneiderman has said that the sites violate state laws against gambling, calling daily fantasy a game of chance and not a game of skill.

“Our review concludes that DraftKings’/FanDuel’s operations constitute illegal gambling under New York law,” Schneiderman wrote in a letter.

Previously, a judge had ruled that DraftKings and FanDuel could not operate in New York for the duration of the ongoing case. However, that ruling was quickly overturned when a judge granted the pair an emergency stay.

The latest ruling upholds that stay.

The attorney general’s investigation began after a report surfaced that said employees of the websites were winning a lot of money betting at the rival’s website.

Jason Robins, CEO of DraftKings, has said that daily fantasy is not gambling, arguing that it is a game of skill, not chance.

“If you randomly picked a fantasy lineup and played against someone who put thought into it, they would beat you 9 times out of 10, if not more,” Robins argued on ESPN. “So [daily fantasy is] pretty different, I think, from sports books where even though there is some advantage that can be had, the edges are so minimal that it is primarily chance-based.”

Several other states have also banned daily-fantasy sports to some degree, including Nevada, where DraftKings and FanDuel were order to shut down in October.

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