A New York judge has ordered both FanDuel and DraftKings to cease operations in New York while they fight the court case brought on the by the Attorney General, according to the Boston Globe.
Both startups plan to appeal the ruling.
“We are disappointed with the Court’s decision, and will immediately file an emergency notice of appeal in order to preserve the status quo,” a spokesperson for DraftKings said in a statement. “Daily Fantasy Sports contests have been played legally by New Yorkers for the past seven years and we believe this status quo should be maintained while the litigation plays out.”
“We will be appealing — this is only the beginning of the legal process and, perhaps more importantly, the New York legislature is already moving forward on action to ensure our game remains legal and is regulated, which we strongly support,” a spokesperson for FanDuel said in a separate statement. “As the court itself noted, FanDuel is permitted in other states, making New York very much an outlier on the issue, as most states are moving towards sensible regulations — not bans.”
With both companies valued at over $1 billion, this could be a tough hit to take.