DraftKings and FanDuel will remain open in NY during appeal

The two daily fantasy sites were awarded a permanent stay by a panel in New York.
Billy Steele
B. Steele|01.11.16

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DraftKings and FanDuel will remain open in NY during appeal

Daily fantasy sites DraftKings and FanDuel are free to continue operating in the state of New York. After a judge banned the gaming services from taking funds for a few hours last month, an appeals court ruled that the two companies could continue games in the state until an appellate panel reviewed the case. According to ESPN's Darren Rovell, the panel has done so, and it decided that the sites could stay open during the appeals process. The decision follows an amended lawsuit by New York attorney general Eric Schneiderman asking for the companies to not only return profits made in the state, but refund lost money and pay a $5,000 fine per customer. Refunding the entry fees alone could cost the sites up to $200 million.

Today's news is the latest in the ongoing saga between DraftKings, FanDuel and the states in which they operate. New York has garnered the most attention for its efforts, though, as it's the home to FanDuel, the NFL and it has been known to set the precedent for other states on matters of consumer rights. Both companies were already under scrutiny as to whether or not the games were actually gambling since the start of an ad-filled NFL season. After employees for both were accused of insider trading after playing on the rival site, the authorities really began to take notice.

An attorney for DraftKings told the New York Post that the site would be allowed to keep running until Manhattan's Appellate Division reached a final decision. That ruling isn't expected until next fall.

[Image credit: Patrick Smith/Getty Images]

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