In a surprising development, DraftKings and FanDuel been granted an emergency stay by a New York appellate court and will remain fully operational in New York for now, as first reported by Reuters.
Earlier Friday, judge Manuel Mendez granted the state Attorney General’s request for a preliminary injunction that would prevent DraftKings and FanDuel from accepting business from New York-based customers pending the outcome of a future trial. But DraftKings’ request for a stay was granted just hours later, and the company says it intends to remain fully operational in the state while its appeal is considered.
FanDuel also announced it would resume accepting New York customers after the stay was granted; FanDuel had stopped accepting New York players last month shortly after receiving a cease-and-desist letter from NYAG Eric Schneiderman.
“We are disappointed with the Court’s decision, and have filed a notice of appeal and an expedited motion to stay the Court’s decision, pending our appeal, in order to preserve the status quo,” DraftKings counsel David Boies said in a statement. “This immediate stay was granted, so we will remain fully operational in New York.
“We look forward to a full and fair hearing and are confident we will demonstrate clearly to the Court why we should be able to continue to offer our DFS games in New York permanently.
“We are encouraged by our dialogue this week with New York state legislators. We look forward to continuing that conversation.”
Both companies are appealing Mendez’s decision in an attempt to continue doing business in one of the DFS industry’s largest markets.
A trial in the case is expected to commence in 2016, and there’s at least a possibility that the state legislature will make daily fantasy sports contests legal in the state prior to the case’s ultimate conclusion.