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Image credit: Associated Press

FanDuel, DraftKings can operate in New York for now (updated)

A judge shut down the sites for a few hours on Friday, but the appeals court overturned that ruling.

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Associated Press

FanDuel and DraftKings will not be allowed to operate in New York while the companies fight in court against state Attorney General Eric Schneiderman, who contends the sites constitute illegal gambling. State Supreme Court Judge Manuel Mendez ruled on Friday that the sites shut down until the legal battle is resolved, noting that the decision is "not a final determination of the merits and rights of the parties," The Wall Street Journal reports. Schneiderman fought for the temporary shut-down, while both sites (unsuccessfully) argued that they should be allowed to operate during the trial.

DraftKings plans to appeal, it says in a statement to The WSJ: "We are disappointed with the Court's decision and will immediately file an emergency notice of appeal in order to preserve the status quo. Daily Fantasy Sports contests have been played legally by New Yorkers for the past seven years and we believe this status quo should be maintained while the litigation plays out."

Schneiderman says he is "pleased" with the decision, the site reports. "I have said from the beginning that my job is to enforce the law and that is what happened today," he said.

Schneiderman has also targeted Yahoo's daily fantasy sports business. Nevada, home of gambling hub Las Vegas, recently shut down DraftKings and FanDuel in the state. We break down the world of daily fantasy sports (and lawsuits) right here.

Update: Draft Kings and FanDuel are once again free to operate in New York, following a ruling from appellate judge Paul Feinman just hours after Mendez's decision on Friday. This new ruling allows the sites to continue operating until additional judges have a chance to review the ban, Bloomberg reports.

[Image credit: Associated Press]

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