FanDuel to Cease Operations in New York Until Hearing on Nov. 25

The pace of the game is moving quickly in the dispute between New York Attorney General Eric Schneiderman and daily fantasy sports (“DFS”) industry leaders DraftKings, Inc. and FanDuel, Inc. As for the latest news, FanDuel has elected to suspend its New York operations until the November 25th emergency hearing.

Following a month-long investigation, Schneiderman notified DraftKings and FanDuel on November 10, 2015 of his decision to prohibit the companies from accepting New Yorkers’ DFS wagers. Both companies decided to challenge Schneiderman’s decision by filing individual actions in New York state court.

On Monday November 16, 2015, both DraftKings and FanDuel moved for temporary restraining orders (TRO), requesting that the court temporarily prohibit Schneiderman from enforcing his November 10th decision. The court denied these requests. However, an emergency hearing on the matter was scheduled for November 25, 2015. The relief demanded by the companies’ TRO requests will be reconsidered on this date.

On Tuesday the 17th, Schneiderman filed motions for preliminary injunctions. The submissions request the court to prohibit DraftKings and FanDuel from accepting New Yorkers’ fantasy sports wagers.

Despite the November 25th emergency hearing, FanDuel has decided to suspend its New York operations until that hearing date. In statement released on November 17th, FanDuel stated the following:

[W]e are temporarily suspending entry in paid contests for people located in New York as of 2:30 pm EST today, Tuesday, November 17th. This is in addition to the restrictions on deposits previously implemented. We believe that this restriction is temporary and we hope to be able to offer our paid contests to New Yorkers again very soon.

 

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