NY attorney general seeks halt to daily fantasy sports in state

Tue Nov 17, 2015 6:51pm EST
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By Suzanne Barlyn and Jessica Toonkel

(Reuters) - New York state's top prosecutor on Tuesday filed for a temporary injunction that would shut down daily fantasy sports leaders DraftKings and FanDuel in the state in the latest blow to the fast-growing, multibillion-dollar industry.

Daily fantasy sports gaming "is nothing more than a rebranding of sports betting," New York Attorney General Eric Schneiderman said in legal documents filed in a Manhattan trial court. "It is plainly illegal."

In response to the state attorney general's moves, FanDuel stopped allowing New Yorkers to participate in paid contests as of Tuesday afternoon.

"We believe that this restriction is temporary and we hope to be able to offer our paid contests to New Yorkers again very soon," FanDuel said.

DraftKings, however, has pledged to continue running its business as usual in the state.

New York has more daily fantasy sports players than any other U.S. state, according to Eilers Research, so being forced to shut down there could cripple the companies.

The move by Schneiderman, which was expected, followed a failed effort on Monday by the two fantasy sports companies to obtain a separate court order that would have headed off Schneiderman's proceeding.

A hearing on the injunction is set for Nov. 25.   Continued...

A DraftKings logo is displayed on a board inside of the DFS Players Conference in New York November 13, 2015. REUTERS/Lucas Jackson