DraftKings, FanDuel agree DFS settlement in New York

DraftKings and FanDuel have reached a settlement with the office of New York Attorney General Eric Schneiderman regarding the future of their daily fantasy sports (DFS) services in the US state.

Under the agreement, both DraftKings and FanDuel will stop operating in New York until September, pending legislation that would otherwise allow them to offer such services.

Regulators in the state have already agreed to a September date for a primary appeal over the legality of DFS in New York.

In a statement, FanDuel said: “We are announcing that as of today (Monday), FanDuel will cease offering paid contests in the state of New York per the terms of a settlement reached with the Attorney General on certain aspects of the ongoing litigation.

“FanDuel is headquartered in Manhattan, where we employ more than 170 young, smart, passionate fans who are committed to innovating and providing the best fantasy experience possible.

“We are proud to be one of New York’s largest startup companies, and while it is disheartening for us to restrict access to paid contests in our home state, we believe this is in the best interest of our company, the fantasy industry and our players while we continue to pursue legal clarity in New York.”

Schneiderman said in a statement: “As I've said from the start, my job is to enforce the law, and starting today, DraftKings and FanDuel will abide by it. Today's agreement also creates an expedited path to resolve this litigation should that law change or upon a decision by the appellate division.”

The settlement comes after DraftKings last month launched an appeal over the preliminary injunction placed on DFS operators in New York.

In its appeal, DraftKings said the court that sided with Schneiderman in his battle to ban DFS operators “abused its discretion” and committed several errors of law when it imposed the injunction in December.

Related article: DraftKings launches appeal against NY injunction