Judge blocks DraftKings, FanDuel from operating in New York

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NEW YORK (AP) — A state judge has barred daily fantasy sports sites DraftKings and FanDuel from doing business in New York.

The order issued Friday by state Supreme Court Justice Manuel Mendez also denied attempts from the country’s two biggest daily fantasy sports to block the state’s attorney general enforcement action.

Attorney General Eric Schneiderman has called the games illegal gambling based on chance, not skill. His office sued the companies in state court to force them to stop.

“We are pleased with the decision, consistent with our view that DraftKings and FanDuel are operating illegal gambling operations in clear violation of New York law,” says Schneiderman. “I have said from the beginning that my job is to enforce the law, and that is what happened today.”

The companies argue their games are based on skill and are therefore lawful.

DraftKings released a statement in relation to the ruling:

“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.”

Messages seeking comment from Boston-based DraftKings and New York-based FanDuel were not immediately returned.

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