New York State Supreme Court judge Manuel J. Mendez has granted Attorney General Eric Schneiderman's injunction seeking to bar daily fantasy sports sites DraftKings and FanDuel from operating in New York State. Judge Mendez also denied motions filed by both DFS sites looking to prevent the attorney general and New York State from interfering with their business operations in state.
Schneiderman filed two separate cases against DraftKings and FanDuel on November 17, and asserted nine causes of actions against both, alleging they were engaged in illegal and fraudulent activity in the state. In the filings, he also included a request for injunctive relief to bar both sites from accepting fees/wagers in New York State while the action was pending, and that was granted today. Schneiderman relied upon the General Business Law and New York State constitution, among other statutes. Judge Mendez held that the attorney general had established a likelihood of success on the merits and thus granted the injunction "enjoining and restraining DraftKings Inc. [and FanDuel] from doing business in the State of New York, accepting entry fees, wagers or bets from New York consumers in regards to any competition, game or contest run on DraftKings, Inc.'s [and FanDuel's] website."
Judge Mendez also noted that neither company disputed the evidence or arguments from the attorney general but argued that daily fantasy sports were a game of skill.
This does not mean that Daily Fantasy Sports are dead in New York State from now on, just while this action is pending in the courts. It is, however, troubling for both companies because the standard for granting such relief requires a likelihood of success on the merits, which means Judge Mendez thinks the attorney general has a pretty good case.
You can read the whole decision below
Update: Both FanDuel and DraftKings appealed this decision and the New York State Court of Appeals granted an interim stay of the injunction. This means both companies can continue to accept wagers in New York, at least for now.