DraftKings And FanDuel File Lawsuits To Stop New York Ban
DraftKings and FanDuel have filed lawsuits to stop New York’s ban of the fantasy sports sites. The lawsuits could result in the New York Supreme Court making the ultimate decision.
DraftKings released the following statement, according to USA Today:
Today, we have taken decisive legal action to prevent a unilateral, misinformed and legally misguided attempt by the New York Attorney General to act as judge, jury and executioner for daily fantasy sports in New York. We are asking the New York Supreme Court to rule that the Attorney General’s cease-and-desist letter is unconstitutional, an abuse of discretion, and simply wrong. We are confident in our legal position and intend to continue to fight to preserve the right of the over 500,000 New York consumers to play the fantasy sports games they love.
New York Attorney General Eric Schneiderman banned the sites from accepting users in New York after he said the sites broke New York gambling laws. Schneiderman gave the websites five days to file legal actions, which both have now done. (RELATED: Fantasy Sports Sites FanDuel And DraftKings Banned In New York)
According to USA Today, people are protesting the decision outside of Schneiderman’s offices.
Daniel Wallach, a gaming and sports law expert in Florida, feels that Schneiderman’s decision could serve as a dangerous precedent for the sites under the Illegal Gambling Business Act — a law that makes it a federal crime to violate state gambling laws.
“I’m looking two chess moves ahead, and how Schneiderman’s opinion can serve as the foundation for an escalated federal law prosecution. Their future depends on winning the battle of New York, winning the battle of the Hudson. If they lose the battle of the Hudson, there may not be too many battles for them left to fight,” Wallach told USA Today.