Daily fantasy sports operators win permanent stay of New York injunction

Daily fantasy sports operators have won the right to continue operating in New York until their court fight with the state’s attorney general is resolved.

On Monday, an appellate panel of New York’s Supreme Court granted motions filed by DraftKings and FanDuel to stay the injunction imposed on them by Justice Manuel Mendez on Dec. 11, 2015. The companies had already won a temporary stay of that injunction the same day it was issued.

The decision, news of which was first reported by ESPN’s Darren Rovell, means the DFS operators can continue operating in New York at least until May, when the complaint brought by Attorney General Eric Schneiderman in November will be heard. Schneiderman hit both companies with cease and desist orders based on his assertion that they are illegal gambling operators acting in defiance of New York law.

Schneiderman upped the ante on New Year’s Eve, filing an amended complaint that effectively seeks to bankrupt both operators by requiring them to refund all moneys lost by New York players and to pay penalties of $5k for each violation of state gambling law (i.e., one for every New York DFS player).