In the latest update on the New York daily fantasy sports saga, DraftKings and FanDuel were barred from operation in the state early Friday morning. Supreme Court Justice Manuel J. Menez granted the injunction filed by Attorney General Eric Schneiderman, reasoning that “the balancing of the equities are in favor of the NYAG (New York Attorney General),” according to Joe Drape of the New York Times.
Hours later, appeals court judge Paul Feinman granted the companies an “emergency stay,” which allowed New York operations to continue through Jan. 4. The appeal was filed by DraftKings, whose lawyers argued that the injunction represented a misapplication of the law, according to The Times. One of those attorneys, David Boies, also said “Daily Fantasy Sports contests have been played legally by New Yorkers for the past seven years, and we believe this status quo should be maintained while the litigation plays out.”
The critical issue in whether or not the games require skill, which is currently legal, or chance, which is not. Attorneys for the state argue that daily fantasy sports constitute gambling because the customer cannot control the outcome, while those for DraftKings suggest that the games require skill since few players win most of the money.
Read more on this issue at The New York Times.
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