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DraftKings and FanDuel can operate in New York for now, court rules

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After a judge ruled that fantasy sports sites DraftKings and FanDuel were illegally operating in New York, the two businesses were shut down — only for a higher court in the state to quickly reinstate them pending a closer look. A final decision from that higher court will now allow the two companies to continue operating for the duration of the appeals process.

According to The New York Post, a DraftKings attorney said both companies will now be able to stay open until a full appellate decision is reached. That decision will likely come next fall, the Post writes.

The New York Attorney General's Office took DraftKings and FanDuel to court late last year, arguing that the two businesses were running illegal gambling operations under New York law. The businesses fought back, telling a judge recently that they are games of skill, and therefore not subject to gambling regulation.

What will likely be a long trial focusing on the fundamental legality of the businesses is still coming after the appeals court makes it decision.