On Monday, DraftKings and FanDuel requested a temporary restraining order from the New York State Supreme Court to expedite the decision on if the company’s would be able to continue operating in the state as they take on Eric Schneiderman, the Attorney General, and his decision to ban DFS sites in New York.
The DFS sites decided to file the order after filing a petition on Friday to ask Justice Manuel Mendez to give the company a restraining order to stop the AG from pressuring as well as threatening the partners of the company from continuing business. In the filing on Friday, it states that the office of Schneiderman began to pressure Vantiv, a payment processor, who then stopped accepting deposits from players based in New York.
With Monday’s filing, both FanDuel and DraftKings continued their argument on Schneiderman and why he is wrong with his ruling the activity of daily fantasy sports as illegal. They also argue why the AG should not have the power to shut down their business.
Late Monday, Justice Manuel Mendez decided to deny the order of FanDuel and DraftKings, seeming to be wary of restraining Schneiderman’s enforcement power. It is now believed that Schneiderman will memorialize the ruling he made in the letters of cease-and-desist last Tuesday by filing for an injunction. The injunction would stop FanDuel and DraftKings from being able to accept business from customers based in the state. A November 25th court date has been set for the companies to argue their merits in the New York case.
For now, DraftKings has stated they will continue to offer their services for residents in the state. Speaking with ESPN, Josh Schiller a representative of the DraftKings legal team Boies, Schiller and Flexner, stated that they look forward to their day in court, claiming daily fantasy sports are not an illegal gambling operation and there is not credibility in the argument that season-long fantasy could be considered legal while daily fantasy is not.
Attorneys for DraftKings also stated that Schneiderman told the court he does not plan on taking action on DraftKings or their partners before the hearing takes place. The office of the AG have an issue with the view of DraftKings and stated that their next move would be to challenge the ability for the sites to operate legally within the state.