FanDuel and DraftKings File Individual Actions v. NY Atty. Gen. Schneiderman

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On Friday November 13, 2015, daily fantasy sports (DFS) industry leader DraftKings, Inc. filed a state court lawsuit against N.Y. Attorney General Eric Schneiderman. The action seeks an injunction precluding the AG from prohibiting DraftKings’ DFS operations in New York State. Later that day, FanDuel, Inc., DraftKings’ industry competitor, filed its own individual state court action requesting the same.

The two actions were filed following AG Schneiderman’s notice to DraftKings and FanDuel to cease and desist from accepting DFS wagers from New York residents. Schneiderman notified the two companies of this decision in letters dated November 10, 2015.

FanDuel’s petition alleges that the Attorney General’s activities have been illegal. It claims that Schneiderman’s comments to the public and the media regarding the legality of DFS is causing “immediate and continuing harm to FanDuel by damaging FanDuel’s reputation with consumers, service providers and the public . . . .”

In response to the two lawsuits, Schneiderman’s office released the following statement:

The attorney general’s job is to enforce New York state law, and the law here is clear. Online sports gambling sites are illegal in New York. DraftKings and FanDuel are operating illegal sports betting websites under New York law, causing the same kinds of social and economic harms as other forms of illegal gambling.

 

 

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