MANHATTAN — Sports fans can keep betting through the NFL playoffs after a court ruled that fantasy sites DraftKings and FanDuel can take wagers while they fight a suit alleging illegal gambling.
The sites allow players to create rosters composed of real-life athletes. For a fee, those rosters can be entered into one-day competitions against other fantasy teams. Prize money is awarded to players whose selected athletes perform the best that day.
On Dec. 11, the sites were ordered to cease operations by Supreme Court Justice Manuel J. Mendez.
The injunction Mendez approved was requested by Attorney General Eric Schneiderman, who is suing the sites. Schneiderman is also seeking to force FanDuel and DraftKings to return the money New York residents have lost to them, according to the New York Post — a sum totaling hundreds of millions of dollars last year alone.
But Mendez's ruling was temporarily stayed that same day. Monday’s decision, issued by the Appellate Division of the Supreme Court, continues that stay through the companies’ trial.
"Having already obtained a preliminary injunction against these companies, we look forward to demonstrating to the Appellate Division that the trial judge was correct,” said Schneiderman spokesman Damien LaVera Monday.
“DraftKings and FanDuel are indeed operating illegal gambling operations in New York and should be permanently barred from doing business in New York.”
FanDuel spokeswoman Emily Bass said the company was “grateful” for the ruling.
“We are confident that fantasy sports have always operated lawfully in New York, but we do believe that new, common-sense regulations to protect consumers and reflect the evolution and growth of the game are needed,” Bass said.
“The New York Legislature, like many states around the country, is working towards such regulation and we will work with them to achieve it."
DraftKings did not immediately respond to a request for comment Monday.
