Skip to main content

Judge orders FanDuel and DraftKings to halt all business in New York

Judge orders FanDuel and DraftKings to halt all business in New York

Share this story

Scott Olson/Getty Images

Online fantasy sports betting sites FanDuel and DraftKings will need to temporarily shut down operations in New York, as a judge today granted an injunction against both companies. State Supreme Court Justice Manuel Mendez sided with New York's attorney general, finding that the underlying model that's helped put these businesses atop a multibillion-dollar industry likely amounts to illegal sports wagering and gambling under state law.

New York is home to the highest number of daily fantasy players at 12.8 percent, so if FanDuel and DraftKings are eventually shuttered in the state for good, it would be a significant blow to their revenue stream. Attorney General Eric Schneiderman aggressive pursuit could also influence other states to follow New York's lead and seek similar shutdowns.

Through the face of FBI and Justice Department investigations, plus the legal challenge in New York, both companies have maintained that their services are completely legal and based on skill. Attorneys representing DraftKings have already said the company will seek a stay of the decision, with plans to appeal. FanDuel had already ceased some NY operations after New York began its quest to kick both companies out of the state.