David Boies, counsel to DraftKings and Chairman at Boies, Schiller & Flexner LLP, released a statement through DraftKings Monday, along with a copy of a brief  in support of its motion for a stay, also filed Monday with the
Appellate Division of the Supreme Court of the State of New York.

The brief notes that DraftKings has operated in  New York for about a decade with no interference from attorneys general and requests  to maintain the status quo through a short extension of the interim stay that is already in place; otherwise the company would be forced out of business in the state before the case could be heard and decided on its merits.

In the release Boies says, “Our arguments remain strong and we are confident in our appeal for four simple reasons:

1. The Attorney General has still offered no evidence that supports a preliminary injunction.

2. Daily fantasy sports contests are not gambling – their outcome is controlled by the knowledge and skill of DFS players – that’s how you win or lose.

3. The only difference between a daily and a season-long fantasy contest is how long it lasts and the Attorney General has said that season-long fantasy sports contests are lawful.

4. It is legal for skills-based contests to charge entry fees and award prizes to participating contestants. A DFS player exercises “control and influence” over whether they win a prize by their choice of a roster which is without a doubt a skills-based exercise.”

New York Attorney General Eric Schneiderman has painted DFS as an illegal gambling activity. In December a lower court judge sided with the lawman and barred the companies from operating in the state. An appellate judge stayed that order until a full panel of appellate judges can weigh in on the issue. The panel could convene within as soon as two weeks, placing the decision right in the middle of the NFL playoffs.

Schneiderman is staying on the offense and recently demanded that DraftKings and FanDuel return entry fees to NY State residents, which could amount to as many as 600,000 refunds worth as much as $200 million for 2015.

One Response

  1. Steven Norton

    Fantasy Sports has slipped thru the gambling cracks, just like Internet Cafes and regular sports betting. Major professional sports Leagues continue to fight betting on the outcome of their games, but invest in and support games, based on the fictional outcome of players from their own teams. A lot of questionable practices are being disclosed about the staff of Draft Kings and Fan Duel, taking advantage of information only available to them, and betting on other Fantasy sites. Sports Betting and Fantasy Sports are both activities, that Americans will continue to bet on, whether legal or not. But it seems much better to legalize both, put them under some form of State Gaming Agency, and also earn a small tax for the participating States. With the exception of the NBA, our other professional leagues strongly oppose Sports Betting, but invest in the Fantasy Leagues, and allow their advertising on televised games. Fantasy Sports falsely pretends that their product is skill based, but by the same justification, so is Pari-Mutual wagering or the casino games of Poker and Black Jack. When you invest (make a bet) on an event, hoping to receive a larger payout, its gambling; pure and simple. There may be skill involved, but a great deal of chance is also present; like an injury, a fumble or pass interception, or a missed field goal or free throw. Our citizenry will be much better protected if we follow the Nevada model and allow Sports Betting and approve Fantasy Sports, with new oversight and restrictions.

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