Report: DFS sites allowed to operate in N.Y. during appeal

The battle between the two biggest names in daily fantasy sports (DFS) and the state of New York made headlines again, with news that they will be able to continue operations — at least for the time being.

The Seattle Times reported on Monday that DFS sites DraftKings and FanDuel will be able to continue operating in New York while they appeal the order that they close up shop in the state:

The decision by the state Supreme Court Appellate Division in Manhattan comes exactly a month after just one of the judges on the panel stayed a lower court’s ruling that the companies stop business in New York altogether. That preliminary injunction came after state Attorney General Eric Schneiderman sued them to end their operations, arguing they were operating as illegal gambling operations. 

The case will next go before the court during its May term.

It is an interesting turn in a string of events that have plagued the widely popular sites since the start of the 2015 NFL season. Claims that the high-profile DFS sites conduct illegal gambling practices were topped off when Schneiderman served the two sites cease-and-desist letters back in November.

Schneiderman and company are reportedly not wavered by the decision, the article revealed:

"Having already obtained a preliminary injunction against these companies, we look forward to demonstrating to the appellate division that the trial judge was correct,” said Damien LaVera, Schneiderman’s top spokesman. “DraftKings and FanDuel are indeed operating illegal gambling operations in New York and should be permanently barred from doing business in New York.”

New York wouldn't be the first state to shut the door on DraftKings and FanDuel. The state of Illinois deemed the sites illegal and asked for them to changed the parameters of the site so Illinois residence couldn't use them.