FanDuel stops taking bets in New York - for now

Here's how to cheat at fantasy football
Here's how to cheat at fantasy football

Daily fantasy sports site FanDuel said Tuesday it has stopped allowing New Yorkers to enter its games, though it hopes to let them back in next week.

"FanDuel has always complied with state and federal law and we are going to continue to fight to ensure millions of New Yorkers have the right to play the fantasy sports games they love," the company said in a statement. The company estimates that 10% of its players are from New York.

The move comes after New York Attorney General Eric Schneiderman filed suit against both FanDuel and rival site DraftKings to shut the sites down in the state.

Schneiderman's suit argues that daily fantasy sports are illegal under the state's gambling laws.

"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 anti-gambling laws were intended to avoid," he says.

On Friday, both DraftKings and FanDuel filed their own suits against Schneiderman. They filed motions on Monday seeking to block Schneiderman from shutting them down in New York. Both companies are due back in court separately on Nov. 25 to argue their cases.

FanDuel said it hopes to open up to New York players again after that hearing.

"We look forward to the court vindicating our position next week," it said.

Related: Fantasy sports fans protest New York ban

Despite FanDuel's retreat from the state, DraftKings is still taking bets from New York state residents.

"We are confident in our legal position, and look forward to our day in court next week," DraftKings said Monday evening.

According DraftKings, Schneiderman's staff "assured" the court that the AG "will take no action against DraftKings or its business partners" before next week's hearing.

David Boies, a high profile attorney hired by DraftKings last week, argued that Schneiderman's effort to shut down daily fantasy sites in New York was unconstitutional.

He charges that Schneiderman and his office kept plans to shut down the games a secret from DraftKings despite a month of communication between his office and the companies. Boies says Schneiderman withheld that information so that DraftKings couldn't challenge his action in court before it was announced.

Boies also claims Schneiderman improperly singled out DraftKings and FanDuel for his action.

FanDuel says Schneiderman's attempt to draw a distinction between daily fantasy sports games and those that take place over the course of a season has no basis in law.

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