DraftKings, FanDuel ink deal with New York AG to halt real-money fantasy contests

Daily fantasy sports operators DraftKings and FanDuel have agreed to cease offering paid fantasy contests in New York state until their legal tiff with the state’s attorney general is resolved.

On Monday, New York AG Eric Schneiderman announced that both DFS operators had agreed to stop offering paid fantasy contests to New York residents until September, when the state appeals court handling the sites’ appeals of Schneiderman’s cease and desist order holds a hearing. (Copies of the individual agreements can be viewed here and here.)

In exchange, Schneiderman has agreed not to pursue litigation aimed at forcing the sites to repay all moneys collected from New York DFS players. However, Schneiderman said Monday’s agreement didn’t prevent him from pursuing previously filed claims of false advertising and consumer fraud.

If you’re just joining us, Schneiderman filed a legal complaint against both operators last November, based on his opinion that the sites were illegal gambling operators as defined by state law. Schneiderman followed that up with his C&D order but the operators convinced a state court to stay that ruling while their appeals are heard.