Preliminary ruling by the NY Supreme Court went in favor of the state over Draft Kings and FanDuel. Gambling ban for fantasy sports betting sites is staying in effect until the Court makes an official ruling.
Quote:
|
Originally Posted by ESPN
A New York Supreme Court justice on Friday granted a preliminary injunction to Attorney General Eric Schneiderman to stop daily fantasy operators DraftKings and FanDuel from doing business in the state.
Justice Manuel Mendez agreed with Schneiderman's contention that the companies are operating illegal gambling sites based on how New York law defines gambling. Lawyers for DraftKings and FanDuel argued that their clients could not have violated gambling statutes because they were taking in entry fees and not wagers. The main support for their contention was a New Jersey case -- an unpublished decision in Humphrey v. Viacom (2007) -- which Mendez disregarded, saying that what they took in were in fact bets under New York law.
"New York State penal law does not refer to 'wagering' or 'betting,' rather it states that a person, 'risks something of value,'" Mendez wrote. "The payment of an 'entry fee' as high as $10,600 on one or more contests daily could certainly be deemed risking 'something of value.'"
|