Following New York Attorney General Eric Schneiderman's request for daily fantasy sports sites DraftKings and FanDuel to stop operating in his state, the two sites filed a lawsuit against the AG. Filing a petition with the New York Supreme Court, both sites allege that Schneiderman's office illegally interfered with their business operations by threatening payment processing vendors if they didn't stop handling transactions for players in New York. The Attorney General also declared the two illegal gambling sites earlier this week, threatening to ban them if they didn't stop operations. The companies maintain that their version of fantasy sports do indeed require skill rather than luck, which separates them from regular ol' gambling.
As part of the petition, DraftKings and FanDuel asked for permission to continue operations in the state as the legal proceedings continue. While New York followed Nevada's lead in banning the daily fantasy sports sites, other states have a habit of following it on matters of consumer protection. There's also the millions of players that reside there and it's where FanDuel's HQ is located. That being said, the battle is fair from over, and we'll be curious to see if other states attempt to squash the two sites as well.
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