A judge has granted New York Attorney General Eric T. Schneiderman's request to bar fantasy sports sites FanDuel and DraftKings from doing business in the state.
Schneiderman filed an enforcement action in New York State Supreme Court on Nov. 17, seeking a preliminary injunction against the fantasy sites that allow players to compete against each other for money.
The attorney general's memorandum cited New York's ban on bookmaking and other forms of sports gambling that have stood since 1894.
"So-called Daily Fantasy Sports ('DFS') wagers fit squarely in both these definitions," the memorandum reads, "though by meeting just one of the two definitions DFS would be considered gambling. DFS is nothing more than a rebranding of sports betting. It is plainly illegal."
Federal and congressional authorities have also been looking at the sites' business model to see if it runs afoul of U.S. gambling laws.
In addition to those challenges, the sites also face a legal threat from NFL players. From our post on that development in October:
"Washington wide receiver Pierre Garcon has filed a class-action lawsuit on behalf of NFL players against the daily fantasy sports site FanDuel, alleging it misuses players' names and likenesses without proper licensing or permission."
Earlier in that same month, DraftKings and FanDuel moved to reassure their customers, after questions emerged about whether an employee of one site used inside information to win thousands of dollars on the other site.
As the Two-Way reported:
"Daily fantasy sites such as FanDuel and Draft Kings offer customers the chance to assemble a fantasy team roster (with a salary cap) that they then pit against other contenders. Some games are free to enter; others require buy-ins that range from $3 to $20 and up, with first-place payouts that top $1 million."
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