Daily fantasy sports websites DraftKings and FanDuel cannot operate in New York, a judge said Friday.
New York Supreme Court Judge Manuel J. Mendez granted a preliminary injunction sought by New York’s attorney general, Eric Schneiderman, against the sites.
“We are pleased with the decision, consistent with our view that DraftKings and FanDuel are operating illegal gambling operations in clear violation of New York law,” Schneiderman said in a statement. “I have said from the beginning that my job is to enforce the law, and that is what happened today.”
The preliminary injunction is different from a final ruling in the battle between the websites and the attorney general, Mendez said in his order.
A DraftKings lawyer said the company would appeal the ruling. FanDuel did not immediately respond to a request for comment.
It’s a major blow to the embattled websites, which offer a daily alternative to traditional season-long fantasy sports. Users can pick virtual teams of real-life players on the websites and earn monetary rewards if their players do well.
The websites say they offer games-of-skill, not chance-based games that are closer to gambling. Their critics disagree and say that the websites offer sports betting by another name.
Daily fantasy has also taken heat in Washington. House Energy and Commerce Committee Chairman Fred Upton (R-Mich.) has said it is likely the committee will hold hearings on the issue.