New York AG attempts to block DFS duo
State Attorney General Eric Schneiderman files injunctions against FanDuel and DraftKings, also turns his attention to YahooÂ
New York Attorney General (AG) Eric Schneiderman has hit back at FanDuel and DraftKings by filing preliminary injunctions seeking to block both firms from operating in the state. [private]
The AG filed the injunctions with the New York Supreme Court yesterday, and said the lawsuits âdetail alleged violations of lawâ by both operators.
Schneiderman says DFS âfits squarelyâ into the definition of gambling under state law. âDFS is nothing more than a rebranding of sports betting. It is plainly illegal,â the memo added.
Following the injunction, FanDuel confirmed it was no longer taking deposits from players in the state having scaled back operations earlier in the week.
DraftKings, however, vowed to continue offering contests to New York players at least until the emergency hearing â announced yesterday â takes place on November 25.
The hearing was scheduled after both operators filed for temporary restraining orders to block the AGâs earlier ruling that DFS was illegal gambling under state law.
However federal judge Manuel Mendez denied the injunctions with FanDuel and DraftKings having to settle for next weekâs hearing instead.
âAs a result of that decision, we are temporarily suspending entry in paid contests for people located in New York,â FanDuel said in a statement.
âWe believe that this restriction is temporary and we hope to be able to offer our paid contests to New Yorkers again very soon,â it added.
DraftKings said it was looking forward to being afforded a âfull and fairâ opportunity to demonstrate why DFS is legal under New York law.
âWe believe the AGâs view of this issue is based on an incomplete understanding of the facts about how our business operates and a fundamental misinterpretation and misapplication of the law,â it added.
Schneidermanâs probe has so far been focused on FanDuel and DraftKings to date, but reports have emerged overnight that he had now turned his attention to Yahooâs DFS offering.