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DraftKings and FanDuel were just dealt their biggest blow yet

By Emmett Knowlton

After being order to shut down by the state's attorney general, a New York judge has ruled that DraftKings and FanDuel cannot offer daily fantasy contests in the state of New York for the duration of the ongoing case, as first reported by Daniel Wallach.

According to Wallach, DraftKings and FanDuel will both appeal the ruling in the New York Appellate Division, and ask for a stay of injunction in order to allow both companies to remain operating throughout the case.

In November, New York Attorney General Eric T. Schneiderman ordered that daily fantasy sports websites constituted gambling and were thus illegal. 
At the time, Schneiderman called the websites illegal gambling under New York law.

"Our review concludes that DraftKings'/FanDuel's operations constitute illegal gambling under New York law," Schneiderman wrote in a letter.

The attorney general's investigation after a report surfaced that said employees of the websites were winning a lot of money betting at the rival's website.

Jason Robins, CEO of the daily fantasy site DraftKings has argued that daily fantasy is not gambling, arguing that it is a game of skill, not chance.
"If you randomly picked a fantasy lineup and played against someone who put thought into it, they would beat you 9 times out of 10, if not more," Robins argued on ESPN. "So [daily fantasy is] pretty different, I think, from sports books where even though there is some advantage that can be had, the edges are so minimal that it is primarily chance-based."

Several other states have also banned daily fantasy sports to some degree, including Nevada, where DraftKings and FanDuel were order to shut down in October.

The daily fantasy sports sites also asked for an expedited trial, which the judge also ruled against.

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