DraftKings and FanDuel yesterday received a permanent stay of the injunction against them from New York Attorney General Eric Schneiderman. The decision by a panel of judges from the Appellate Division of the New York Supreme Court allows the daily fantasy sports companies to continue operating in the state pending a larger trial on the case, likely to occur in the spring. New York remains among the largest sources of users and revenue of any U.S. state for the DFS industry. The permanent stay follows the original Dec. 11 emergency stay granted to DraftKings and FanDuel. Earlier that day, New York Supreme Court Judge Manuel Mendez sided with Schneiderman’s argument that DFS represented a violation of state laws against illegal gambling. While the case is pending, bills have been introduced in the New York legislature seeking to clarify the status of DFS in the state (Eric Fisher, Staff Writer). REUTERS' Barlyn & McCrank noted the court will hear the appeal, but it is "not known when the case will be decided" (REUTERS, 1/11). The WALL STREET JOURNAL's Sharon Terlep notes both companies said that they have been "working with legislatures and attorneys general in other states to implement regulations in the hopes of staving off further attempts to ban" DFS (WALL STREET JOURNAL, 1/12).
MASS REGULATION: In Boston, Curt Woodward notes the Massachusetts Gaming Commission yesterday recommended that state lawmakers "consider additional regulation and oversight" of the DFS industry, "including closer scrutiny of the companies and their employees and clear disclosure of the odds players face" (BOSTON GLOBE, 1/12). Also in Boston, Bob McGovern notes the MGC yesterday "released its highly anticipated white paper," which "lays out a number of regulatory options but focuses on creating a specific commission to oversee Internet gaming" (BOSTON HERALD, 1/12).
