A New York judge earlier today granted an injunction sought by the New York Attorney General barring FanDuel and DraftKings from operating in the state. A scant few hours later an appeals court judge granted an emergency stay request from the companies that will allow them to continue operating until at least January 4, 2016.
Appellate Judge Paul G. Feinman granted the stay after lawyers for the companies argued that even a temporary shutdown would harm their businesses irreparably.
Earlier in the day Attorney General Eric Schneiderman’s request for a temporary injunction, shutting the businesses down in the state, was granted by Justice Manuel J. Mendez of the New York State Supreme Court. Although the judge didn’t rule on the merits of the case he noted his reasons for granting the state’s motion. “The balancing of the equities are in favor of the N.Y.A.G. and the State of New York due to their interest in protecting the public, particularly those with gambling addictions,” Justice Mendez wrote.
Attorneys for the DFS companies immediately appealed and were successful in obtaining a stay of the Supreme Court order.
Estimates vary but some web analytics have put internet traffic at the FanDuel and DraftKings websites at over 50 million and 30 million visits each month respectively. New York is said to be the world’s largest market for daily fantasy sports with some estimates of over one million customers in the state. Others have placed the number much lower. The immediate loss of the New York market could have cost the companies between $8 million to $35 million per month in revenues.