New York Attorney General Eric Schneiderman this morning "sought an injunction" to "immediately stop fantasy sports companies from operating" in the state, according to Yancey Roy of NEWSDAY. Schneiderman asked a state court to "issue the order one week after he sent a cease-and-desist letter to DraftKings and FanDuel." His motion also came "one day after a judge rejected the companies’ requests to issue a temporary restraining order against Schneiderman that would have prevented a shut down" (NEWSDAY.com, 11/17). New York State Supreme Court Judge Manuel Mendez late yesterday denied bids by DraftKings and FanDuel to gain a TRO against a cease-and-desist order from Schneiderman, levying a damaging blow to the pair in their ongoing legal fight. The denial came just hours after the separate petitions for the TROs had been filed. Mendez, however, did agree to an expedited court schedule that will see the pair back in court for an emergency hearing Nov. 25 on broader lawsuits against Schneiderman that seek declarations that DFS do not constitute illegal gambling within the confines of New York law. Given the importance of the New York market to both companies, intense interest in the dispute and potential precedent effect, the future of the daily fantasy business could hang in the balance in that hearing. DraftKings last night in a statement said the denial of the TRO stemmed from a pledge from Schneiderman’s office to not enforce the cease-and-desist order, and as a result intends to keep doing business in New York. "The AG assured the Court he will take no action against DraftKings or its business partners before (next week’s hearing). On that record, and because there will be an emergency hearing next week, the Court determined that no TRO was necessary. We are confident in our legal position, and look forward to our day in court." The AG’s office denies any such pledge was made and could file suit as soon as today if DraftKings and FanDuel do not follow the cease-and-desist order and stop operating in the state. FanDuel, meanwhile, has already stopped taking new deposits from New York players. The company also implemented a new verification system that has delayed payments to users, and has left FanDuel two to three days behind in paying out withdrawals to players (Eric Fisher, Staff Writer).
HEDGING THEIR BETS: In Boston, Dan Adams writes DraftKings' expansion into the U.K. "seems less like a bet on growth and more like a hedge against being shut out of markets at home." DraftKings in August named Jeffrey Haas Chief Int'l Officer and he "expects a daily fantasy customer base of roughly 1.1 million people" in the U.K., a market that "could be worth" $60-100M. The company by the end of the year "plans to debut in Britain with a revamped fantasy soccer contest featuring bigger rosters and more comprehensive stats than those now available." DraftKings said that if things go well in the U.K., it will "look to branch out into the rest of Europe, then Asia and Australia, perhaps adding rugby and cricket contests along the way" (BOSTON GLOBE, 11/17).
STRESS OF SUCCESS: In Boston, Dan Adams notes DraftKings co-Founder & CEO Jason Robins on Friday at the inaugural Daily Fantasy Sports Players Conference in N.Y. hinted at the "exhaustion he's feeling amid seemingly unending drama." Robins: "No one enjoys dealing with accusations that hurt and make you feel lousy. It’s a tough period in that sense. This is sometimes the price of success. Unfortunately, it’s happening in way I didn’t anticipate and I’m not enjoying. But we’ll deal with it and make sure we get on the right side of it, or at least, if we don’t, we’ll die trying" (BOSTON GLOBE, 11/17).
IF IT WALKS LIKE A DUCK...: Orioles Exec VP John Angelos said of DFS, “When you get to daily fantasy sports and the close intertwining of gambling with team sports, I wonder what impact associating those brands is going to have for kids long-term. It’s legal to take the sponsorships and we all do it, but are we setting ourselves up as a society for a future where kids are being encouraged to bet early, bet often, bet on individual players, bet on individual innings, and so forth. That I think is a societal question we are going to have to answer. ... Call it a game of skill, call it a game of chance, but at the end of the day you’re putting up some money and you are hoping to get some winnings back. So if it walks like a duck, it probably is a duck” (“The Jeff Blair Show,” CJCL-AM, 11/16).
