On Friday, a New York judge ruled for fantasy sports shutdown in New York State regarding the top daily fantasy sports companies FanDuel and DraftKings, saying the two companies have to halt their business there. The two companies have a multibillion dollar industry, so the fantasy sports shutdown means they will be losing much of their income.

New York Supreme Court Justice Manuel Mendez ruled for the fantasy sports shutdown via an injunction that was sought by Attorney General Eric Schneiderman. Arguments were heard last month on whether the daily sports games were the same thing as illegal games of chance or if they were lawful games involving skill.

Injunction for fantasy sports shutdown not end of story

The injunction to keep the companies from operating in New York is not the final determination on what will be the ultimate issue in the case, as this will be determined during an upcoming trial. FanDuel and DraftKings say they plan to appeal the judge’s ruling.

According to Mendez, the balancing of the equities favors the NYAG and the state of New York because of the interest in protecting the public, especially those who are addicted to gambling. Mendez didn’t deem if the games were skill or chance, just ruled that if it goes to a trial that the New York Attorney General being victorious was very likely.

Both fantasy sports companies get cease and desist letters

Cease and desist letters were mailed to both companies to demand that they both stop taking money from New York players. FanDuel complied with the letter, but DrafKings has kept their business going normally in the State of New York despite the letter.

Fantasy sports began in 1980 and has been very popular online. Participants characteristically form teams spanning a whole season of professional sports, such as American Football, as well as baseball and Basketball and also in hockey. The daily version is something developed in the last ten years, where participants draft a team and play games that last just one time or sometimes over a weekend.

Therefore, some say that this daily version lets participants spend their money at a frequency the critics believe is similar to sports betting, therefore the New York judge ruled for a fantasy sports shutdown in their state, and it could have implications in other states in the future.

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