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DraftKings, FanDuel seek orders to continue Daily Fantasy Sports in New York

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NEW YORK — DraftKings and FanDuel are seeking makeshift restraining orders in an endeavor to operate in New York. New York Attorney General stated that the games to be illegal gambling and demanded they stop taking money from New Yorker’s. But DraftKings and FanDuel are now requesting the New York Supreme Court to allow them to live in the state until resolving their lawsuits.

In a memorandum of law DraftKings said, This court should not allow the attorney general to destroy a business that has been openly and legally operating in the state for years without due process of law.”

On Tuesday, Eric Schneiderman, the New York Attorney General, sent cease and desist letters to FanDuel and DraftKings, chiefs of the daily fantasy sports company, claiming that they stop receiving money from players in the state.

“The Court should preserve the status quo by issuing a temporary restraining order and preliminary injunction that enjoins the Attorney General from taking enforcement actions or making threats against DraftKings or its business partners until the questions concerning the lawfulness of (daily fantasy sports) contests can be resolved on the merits,” DraftKings said in court documents filed Monday with the New York Supreme Court.

DraftKings and FanDuel then filed suit against Schneiderman in New York Supreme Court, asking the court to rule that the games are legal.

On Monday, DraftKings disputes in court documents that Schneiderman’s judgment badly harm its business over the country.

According to Eilers Research NY has more daily fantasy sports players than any other U.S. state, so being imposed to close down there could cripple the fast-growing, multibillion-dollar industry.

The company state, “A shutdown would have a chilling effect on Draft Kings’ ability to attract new investors and partners and would impede its ability to continue its relationships with its existing investors and partners,” then added, “All of this harm would not be confined to New York, but would cause a cascading effect throughout the country-including in the dozens of states where DraftKings continues to operate lawfully, adversely affecting its customer base and its business relations with vendors, customers, and regulators.”

On Friday, FanDuel stopped taking new deposits from players in New York. But on Monday a spokeswoman claimed that the company is continuing 2-3 days behind payouts to players withdrawing their money as usual with the help of a new identity verification system.

Both companies believe that they are legal under a 2006 federal law. Unfortunately the company cracked down on online gambling but rescued paid daily fantasy sports under certain agreements reflecting the efficiency of the members as opposed to pure luck or chance.

FanDuel said in a statement Monday, “FanDuel filed a TRO today because we have been operating transparently in New York for over six years and we believe we should be entitled to our day in court before New Yorkers are suddenly deprived the opportunity to participate in our games by unilateral action by the NY Attorney General.”

The companies might have been fixed targets through aggressive advertising from the beginning of the National Football League season promising large winnings. According to FanDuel, it planned to pay out $2 billion in cash prizes this year.

About James Rhodes

James is an American born sports writer that covers all sports and has a passion for football at every level He began his journalism career then and has been published on numerous sports websites and publications

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