DraftKings, FanDuel face courtroom battles

After squaring off with New York’s attorney general on Monday, daily fantasy sports company DraftKings said it would continue to let New Yorkers play.

DraftKings was seeking an order from a judge to stop AG Eric Schneiderman from shutting down its business in New York.

Schneiderman argues that daily fantasy sports are a form of illegal sports gambling. Last week, he ordered DraftKings and rival site FanDuel to quit letting New Yorkers play and warned he plans to go after the companies with a civil suit.

Both sites fought back with legal action of their own on Monday.

DraftKings was the first to see a judge during a Monday hearing in New York State Supreme Court. No ruling was issued but another hearing was scheduled for Nov. 25.

“We are confident in our legal position, and look forward to our day in court next week,” the company said.

According to a statement from the company, Schneiderman “assured the Court he will take no action against DraftKings” before that hearing.

DraftKings attorney David Boies, filed a motion seeking a temporary restraining order, which would allow the company to continue to accept bets from New York players.

Boies, a high profile attorney hired by DraftKings last week, argues in his motion that Schneiderman’s order banning the games in the state was unconstitutional.

He charges that Schneiderman and his office kept plans to shut down the games a secret from DraftKings despite a month of communication between his office and the companies. Boies says Schneiderman withheld that information so that DraftKings couldn’t challenge his action in court before it was announced.

Boies also argues that Schneiderman improperly singled out DraftKings and FanDuel for his action. He said the temporary restraining order is necessary to give DraftKings time to make its case in court.

FanDuel did not have an immediate comment as to whether it will also seek a restraining order. Schneiderman’s office also did not have an immediate comment on the motion.

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