As first reported by ESPN and confirmed by multiple outlets, FanDuel and DraftKings have been granted a permanent stay by an appellate panel in New York, leaving the companies free to continue accepting players in the state as they fight Attorney General Eric Schneiderman in court.
According to the Sports Business Journal, the stay does not reflect on the merits of the larger case; the decision was instead reached out of acknowledgement that irreparable harm would have resulted from a shutdown in New York, one of the most critical daily fantasy markets.
The order itself makes no mention of the panel’s rationale.
The emergency stay was originally granted to the companies on the same day that judge Manuel Mendez ruled in favor of Schneiderman’s request for a preliminary injunction that would’ve shut the companies down in the state pending a trial. Monday’s decision upholds that stay.
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.
Full statement from DraftKings:
“We are pleased with the Court’s ruling today. Daily Fantasy Sports contests are as legal now as they have been for the past seven years that New Yorkers have been playing them. As our litigation continues, we expect an appellate court to see what we have known since the outset: DFS is a game of knowledge and skill, one that builds community and whose competitive spirit has become important to the lives of millions of people. Our ongoing appeal will make clear that daily fantasy contests require just as much skill as season-long contests, which the Attorney General recognizes as perfectly legal under state law.
“We are engaged with legislatures and Attorneys General across the country, including in New York, to ensure that our fans are able to experience our contests in a fun and fair way with appropriate and thoughtful consumer protections in place. This includes active collaboration with the Attorney General in Massachusetts, where we are working to become the industry leader in transparency and consumer protection. We will continue in these efforts so that fans can keep enjoying Daily Fantasy Sports for years to come.”