FanDuel Ceases Operations in New York

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Update: Rival fantasy sports site DraftKings has just announced that it’s staying open.

FanDuel, one of the major daily fantasy sports websites that’s currently under investigation, has announced that it will cease operation in the State of New York.

It’s possible that FanDuel will return on November 25 when there is a court hearing for an outstanding temporary restraining order that the company filed. If the restraining order goes through, FanDuel could operate despite the Attorney General’s actions. Until then, no FanDuel for New Yorkers.

Last week, New York’s Attorney General Eric T. Schneiderman asked the site, as well as DraftKings, to stop accepting bets in the state. Today, his office filed an injunction and issued a statement: “While irresponsibly denying their status as gambling companies, the [daily fantasy sports] sites pose precisely the same risks to New York residents that New York’s antigambling laws were intended to avoid.”

As it is simply an injunction, FanDuel’s actions are preemptive. The site could technically still operate, but is choosing to clean up a bit before the legal situation escalates any further. DraftKings, in fact, is continuing to operate. The company said in a statement, “we believe the attorney general’s view of this issue is based on an incomplete understanding of the facts about how our business operates and a fundamental misinterpretation and misapplication of the law.”

Despite voluntarily shutting down in New York, FanDuel’s statement also reiterated innocence: “We maintain, unequivocally, that FanDuel has always complied with state and federal law. We look forward to vindicating our position in court next week.”

See also: “Why Aren’t Fantasy Sports Sites Legal in New York?

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