DraftKings, FanDuel file lawsuits to block New York shutdown

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Friday, November 13, 2015

DraftKings and FanDuel both filed lawsuits Friday to block the state attorney general's attempts to shut down their fantasy sports sites.

New York Attorney General Eric Schneiderman issued the two companies cease-and-desist orders this week, saying the companies violate state gambling laws because they offer games of chance, not skill.

The DraftKings filing asks the court to declare Schneiderman's order unconstitutional and block him from attempting to take further action against the company.

The FanDuel filing states that "such a shutdown would deprive hundreds of thousands of subscribing New Yorkers of the opportunity to pit their skills against the skills of others in selecting a 'fantasy' team of athletes from different sports teams ..."

A group rallied outside Schneiderman's office in Manhattan Friday morning in support of online fantasy sports.

The demonstration of about 100 people, organized by the group Fantasy Sports for All, was meant to show Schneiderman how many fantasy sports fans in New York want to keep playing.

FanDuel's CEO has urged New York customers to keep playing. Nigel Eccles said his site is legal and that the court order is extreme.