{"id":32736,"date":"2015-11-17T11:16:08","date_gmt":"2015-11-17T19:16:08","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=32736"},"modified":"2015-11-17T11:51:21","modified_gmt":"2015-11-17T19:51:21","slug":"ny-ag-eric-schneiderman-asks-for-dfs-site-shutdown-in-his-state","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/ny-ag-eric-schneiderman-asks-for-dfs-site-shutdown-in-his-state\/","title":{"rendered":"New York AG Eric Schneiderman Asks Judge to Thwart DraftKings and FanDuels Ops in Empire State"},"content":{"rendered":"
\"Eric
New York AG Eric Schneiderman has filed a request with a Manhattan judge to shut down the two major DFS sites in his state today. DraftKings has accused Schneiderman of \u201cmisreading New York gambling laws,\u201d as the legal battle escalates. (Image: Lucas Jackson\/Reuters)<\/figcaption><\/figure>\n

New York State Attorney General Eric Schneiderman moved the daily fantasy sports battle to a new level today, asking an Empire State judge to force industry leaders FanDuel and DraftKings<\/a> to shut down in his state.<\/p>\n

This, just a day after the two companies had filed a joint request that would keep the AG from doing exactly what he just did.<\/p>\n

FanDuel and DraftKings had obviously failed in a joint legal bid to have a temporary restraining order (TRO) imposed on the New York Attorney General\u2019s office.<\/p>\n

How We Got to This<\/h2>\n

Last week, Schneiderman wrote “cease-and-desist” letters to the two market-leading daily fantasy sports<\/a> (DFS) sites, informing them that their operations constitute \u201cillegal gambling\u201d under New York State law, and noting that they must stop offering their games to residents of the state.<\/p>\n

The motion filed by FanDuel and DraftKings was designed to prevent the AG\u2019s office from launching a legal injunction against the site\u2019s operations before the matter could be resolved at a judicial hearing. The sites\u2019 additional request for an emergency hearing was granted on Monday and is scheduled for next Wednesday.<\/p>\n

How Schneiderman’s latest actions will impact all this remains to be seen, but the AG minced no words in his filing with New York’s Supreme Court today:<\/p>\n

\u201cThe Attorney General seeks a preliminary injunction prohibiting DraftKings and FanDuel from continuing to operate an illegal sports gambling business in New York, in defiance of the state constitution, the penal law and other statutes,\u201d said the requested injunction, which was filed in a Manhattan courtroom today.<\/p><\/blockquote>\n

DraftKings had claimed in a statement on Monday that the AG\u2019s office stated in court that it would not launch action against the two companies before the date of the official hearing, although a spokesperson for the AG reportedly told CNBC that no such assurance had been offered.<\/p>\n

\u201cChilling Effect\u201d<\/h2>\n

The hearing next week is crucial for the DFS sites, as it will determine whether they will be able to get a preliminary injunction that will allow them to continue operations while the case is pending.<\/p>\n

\u201cA shutdown would have a chilling effect on DraftKings’ ability to attract new investors and partners and would impede its ability to continue its relationships with its existing investors and partners,\u201d argued the company in court on Monday.<\/p><\/blockquote>\n

\u201cAll of this harm would not be confined to New York, but would cause a cascading effect throughout the country, including in the dozens of states where DraftKings continues to operate lawfully, adversely affecting its customer base and its business relations with vendors, customers, and regulators.\u201d<\/p>\n

\u201cBullying\u201d Tactics<\/h2>\n

Both companies have come out fighting following the AG\u2019s cease-and-desist letters. While FanDuel said on Friday that it would restrict new deposits from New York customers, DraftKings is continuing its operations as normal in the Empire State.<\/p>\n

Both have launched separate legal action against New York State\u2019s prohibition of its operations. DraftKings\u2019 filing accuses Schneiderman of \u201cmisreading New York\u2019s gambling laws\u201d and of attempting to “bully” the company into shutting down before it has \u201chad a chance to defend itself.\u201d<\/p>\n

Meanwhile, FanDuel has publicly accused the AG\u2019s Office of contacting its third-party payment processors and pressuring them into denying transactions for New York customers. The AG\u2019s office has strenuously denied this claim.<\/p>\n

But in a courtroom in Boston on Monday, DraftKings was successful in convincing a judge to allow payment companies to process transactions from New York customers. The judge agreed with the DFS site, telling the processing outfits they cannot legally refuse to handle these payments.<\/p>\n","protected":false},"excerpt":{"rendered":"

New York State Attorney General Eric Schneiderman moved the daily fantasy sports battle to a new level today, asking an Empire State judge to force industry leaders FanDuel and DraftKings to shut down in his state. This, just a day after the two companies had filed a joint request that would keep the AG from […]<\/p>\n","protected":false},"author":42,"featured_media":32758,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21,19,13,16],"tags":[],"acf":[],"yoast_head":"\nNew York AG Eric Schneiderman Asks Judge to Thwart DraftKings and FanDuels Ops in Empire State<\/title>\n<meta name=\"description\" content=\"New York AG Eric Schneiderman has asked a judge to shutdown operations for DraftKings and FanDuel in the Empire State.\" \/>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"New York AG Eric Schneiderman Asks Judge to Thwart DraftKings and FanDuels Ops in Empire State\" \/>\n<meta property=\"og:description\" content=\"New York AG Eric Schneiderman has asked a judge to shutdown operations for DraftKings and FanDuel in the Empire State.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/ny-ag-eric-schneiderman-asks-for-dfs-site-shutdown-in-his-state\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2015-11-17T19:16:08+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2015-11-17T19:51:21+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2015\/11\/Eric-Schneiderman-NY-AG-requests-DFS-shutdown-in-NY.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"592\" \/>\n\t<meta property=\"og:image:height\" content=\"395\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Casino.org Staff Writer\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Casino.org Staff Writer\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/ny-ag-eric-schneiderman-asks-for-dfs-site-shutdown-in-his-state\/\",\"url\":\"https:\/\/www.casino.org\/news\/ny-ag-eric-schneiderman-asks-for-dfs-site-shutdown-in-his-state\/\",\"name\":\"New York AG Eric Schneiderman Asks Judge to Thwart DraftKings and FanDuels Ops in Empire State\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/ny-ag-eric-schneiderman-asks-for-dfs-site-shutdown-in-his-state\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/ny-ag-eric-schneiderman-asks-for-dfs-site-shutdown-in-his-state\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2015\/11\/Eric-Schneiderman-NY-AG-requests-DFS-shutdown-in-NY.jpg\",\"datePublished\":\"2015-11-17T19:16:08+00:00\",\"dateModified\":\"2015-11-17T19:51:21+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/8c48bf89dc86da77b4d856c7b3b78d77\"},\"description\":\"New York AG Eric Schneiderman has asked a judge to shutdown operations for DraftKings and FanDuel in the Empire State.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/ny-ag-eric-schneiderman-asks-for-dfs-site-shutdown-in-his-state\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/ny-ag-eric-schneiderman-asks-for-dfs-site-shutdown-in-his-state\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/ny-ag-eric-schneiderman-asks-for-dfs-site-shutdown-in-his-state\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2015\/11\/Eric-Schneiderman-NY-AG-requests-DFS-shutdown-in-NY.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2015\/11\/Eric-Schneiderman-NY-AG-requests-DFS-shutdown-in-NY.jpg\",\"width\":592,\"height\":395,\"caption\":\"New York AG Eric Schneiderman filed an a request with a Manhattan judge to shut down the two major DFS sites in his state today. 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