All bets are on for fantasy-sports fans in New York, at least until the fall.
A state appeals court ruled on Monday that DraftKings and FanDuel can keep taking entries from New York customers through the current football and basketball seasons, as well as the upcoming baseball season, pending the outcome of legal action by Attorney General Eric Schneiderman.
The AG cried foul last fall, saying the sites amount to illegal gambling operations and sending them cease-and-desist letters that say the companies’ customers “are clearly placing bets on events outside of their control or influence, specifically on the real-game performance of professional athletes.”
On Monday, Schneiderman vowed to stay on the offensive against the sites, saying they “should be permanently barred from doing business in New York.”
He is also demanding that the sites compensate New York players for all the money they’ve ever lost on fantasy games. The total, including fines, could top $4 billion.
But Manhattan’s appellate division granted the timeout after a lower-court judge, Manuel Mendez, said the sites should be shut down pending a full trial to determine whether they offer games of skill or luck.
The Massachusetts-based DraftKings and New York-headquartered FanDuel argue that their games are based on skill and, therefore, are legal.
The higher-court ruling means the sites can stay in the game until the appeals panel issues a decision in the fall, said DraftKings attorney Joshua Schiller.
A hearing is scheduled for this spring.
Another DraftKings attorney, Randy Mastro, applauded the decision.
“We are very gratified by the court’s ruling,” Mastro said.
It means that “hundreds of thousands of New Yorkers who love daily fantasy sports can continue to enjoy these contests.”
The ruling applies only to New York state, which accounts for about 10 percent of the sites’ business.
FanDuel issued a statement saying, “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.”
Additional reporting by Kirstan Conley