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New York Allows Fantasy Sports Sites to Operate During Court Appeal

DraftKings Inc. And FanDuel Inc. Applications As Ad Spending IncreasesDraftKings Inc. And FanDuel Inc. Applications As Ad Spending Increases

Top fantasy sports companies DraftKings and FanDuel are allowed to continue their daily operations in New York for the time being, an appellate court panel ruled on Monday.

The companies will be allowed to continue doing business until they have concluded their appeal of a court order in New York Supreme Court, ESPN reports. The two are embroiled in a legal fight with New York attorney general Eric Schneiderman, who issued an opinion in Nov. stating that both are engaged in “illegal gambling,” and ordering them to stop accepting bets in the state.

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Hours after a New York Supreme Court justice sided with Schneiderman in Dec., the companies received temporary permission to stay open until at least the end of the year. On Friday, appellate judges within the state’s Supreme Court in Manhattan decided to grant the companies a “permanent stay,” meaning they are allowed to continue operating until legal proceedings concerning their appeal have ended.

DraftKings and FanDuel’s lawyers learned of the latest ruling on Monday, ESPN reports. The full decision is expected to be filed to the court next week.

For more on the legal battle surrounding fantasy sports, watch:

FanDuel issued a statement on its website upon hearing the news:

We are grateful for the legions of New York fantasy sports players that the permanent stay entered today ensures they can continue to participate in our games here as the case progresses. We are confident that fantasy sports have always operated lawfully in New York, but we do believe that new, common-sense regulations to protect consumers and reflect the evolution and growth of the game are needed. The New York legislature, like many states around the country, is working towards such regulation, and we will work with them to achieve it.

Both companies may continue operating until at least May, when the appeal is set to take place.