DraftKings, FanDuel Will Stop Operating Paid Contests In New York

DraftKings and FanDuel have agreed to stop operating paid contests in the state of New York. An agreement with New York Attorney General Eric Schneiderman provides that if the state does not legalize daily fantasy by June 30, the companies "will refrain from taking bets until appeals of injunctions against them are decided in court." Even if the "preliminary injunctions sought by Schneiderman are upheld or the state legalizes paid daily fantasy sports games, the attorney general would be under no obligation to end his false advertising claims against the company." The attorney general "would stop seeking restitution for New York players" (TIMESUNION.com, 3/21).

No specific date for a September appeals hearing has been announced, and it "may not take place if a law is passed in New York legalizing daily fantasy sports this legislative session" (ESPN.com, 3/21).