By T. D. Thornton
A panel of five judges from the Appellate Division of the New York State Supreme Court ruled on Monday that the daily fantasy sports sites FanDuel and DraftKings can operate in New York while fighting a legal challenge by Attorney General Eric Schneiderman, who alleged in a November civil lawsuit that the sites constitute unlawful gambling.
The Monday ruling extends the temporary stay of an injunction granted by a New York state trial court on Dec. 11, but it could be at least four months before the next significant steps in the formal appeals process: The ruling specifically states that the stay has been granted “on condition that the appeals be perfected for the May 2016 Term.”
Joshua Schiller, an attorney for DraftKings, told the New York Post that it might be until well into the next football season–the autumn of 2016–before a full decision on the appeal winds its way through the court system.
Randy Mastro, another attorney for DraftKings, told the Post that “we are very gratified by the court's ruling today continuing the stay for the duration of this appeal so that hundreds of thousands of New Yorkers who love daily fantasy sports can continue to enjoy these contests.”
Eric Fisher, a technology reporter for Sports Business Journal, posted on Twitter that the permanent stay ruling “does not relate to merits of case itself. But does acknowledge irreparable harm could have come from NY shutdown.”
The New York attorney general's office did not immediately issue a comment on the ruling.
FanDuel has not allowed New York residents to play in paid fantasy games since Schneiderman sued. DraftKings has continued to operate in the state. On New Year's Eve, the New York attorney general additionally demanded that the sites return all money to users who lost in 2015 while also imposing fines on the two companies.
The legality of fantasy sports gaming will also be examined in several other states this week.
In Massachusetts, a Tuesday public hearing is scheduled in Boston for proposed rules for online fantasy sports contests. Attorney General Maura Healey outlined regulations in November that she billed as “aggressive, first-in-the-nation rules that include age and advertising restrictions and disclosure requirements” while limiting most players to a $1,000 per-month cap. Both FanDuel and DraftKings have indicated support for the measure.
In Florida, the Naples Herald reported that a House of Representatives panel on Tuesday will take up a bill to shield fantasy sports from being considered illegal gambling in Florida. The House Business & Professions Subcommittee will consider a proposal that includes regulations for the industry while making clear that the games would not be subject to state gambling laws. @thorntontd
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