DraftKings, FanDuel Agree to Stop Taking Real Money Bets in New York

NEW YORK (Associated Press) — The nation’s top two daily fantasy sports websites have agreed to stop operating in New York through the end of baseball season.

New York Attorney General Eric Schneiderman announced the deal with DraftKings and FanDuel on Monday. In a statement, he said:

“I’m pleased to announce that both FanDuel and DraftKings will stop taking bets in New York State, consistent with New York State law and the cease-and-desist orders my office issued at the outset of this matter. As I’ve said from the start, my job is to enforce the law, and starting today, DraftKings and FanDuel will abide by it. Today’s agreement also creates an expedited path to resolve this litigation should that law change or upon a decision by the appellate division. Regardless, our key claims against the companies for false advertising and consumer fraud are not affected by the agreement and will continue.”

Schneiderman had sued the companies last year, arguing the sites were illegal sports betting operations and were violating state laws. The companies argue their contests are games of skill, not of chance.

A lower court judge agreed with the attorney general and ordered them to stop, but the companies appealed. A higher state court allowed the companies to do business during the appeals process.

State lawmakers in Albany are considering legislation that would permit the sites to operate without ambiguity.

By Anonymous