AG accused of 'smear tactics'

FanDuel makes further court bid to allow it to operate

Nigel EcclesDaily fantasy sports websites DraftKings and FanDuel have asked the State Supreme Court Appellate Division in Manhattan to allow them to continue operating in New York while the legal process reaches a conclusion.

The two firms are facing an order from NY attorney general Eric Schneiderman to cease operations in the state and this is now going through an appeal.

DraftKings yesterday accused the Mr Schneiderman of resorting to “smear tactics and speculation”.  Urging a panel of judges to allow them to operate pending the outcome of the case, it said:  “The Attorney General’s armchair sociology would not pass muster on a daytime talk show.”

The AG first filed his “cease and desist” order against DraftKings and Edinburgh-based FanDuel (headed by Nigel Eclles, pictured) in November and was granted a temporary injunction on 11 December to stop the pair from operating. The companies won a stay on the injunction only hours later.

On New Year’s Eve Mr Schneiderman added allegations that the sites use misleading advertising comparable to the casino industry and demanded that they pay back all of the money players have ever lost on the sites in New York along with transaction fines that could exceed $3 billion.

David Boies of Boies, Schiller, & Flexner said in a statement. “The Attorney General has still offered no evidence that supports a preliminary injunction.  Daily fantasy sports contests are not gambling — their outcome is controlled by the knowledge and skill of DFS players — that’s how you win or lose.”

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