DraftKings & FanDuel clear to operate in NY ... for now

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It has been quite a day for online fantasy betting websites.

To start the day, NY trial judge Justice Manuel Mendez granted a temporary injunction which would have stopped DraftKings and FanDuel from serving New Yorkers.

Hours later, Mendez was overruled by appellate court judge with a temporary stay - clearance to operate until at least January 4, which carries bettors through till one week before the college football championship.

NY State Attorney General Eric Schneiderman has had a bull's eye painted on both daily sports betting giants DraftKings and FanDuel, and prompted FanDuel to shut down for New York players on November 17, a week after Schneiderman ordered both websites to stop accepting NY entries, though DraftKings kept its doors open.

Advocates of fantasy sports believe it is a game of skill and not chance, and thus should be illegal under current federal law. There is a specific exemption in the Unlawful Internet Gambling Enforcement Act ("UIGEA") for games of skill vs. chance.

One silver lining from the attention on fantasy sports betting is that discussions are finally taking place on the constitutionality of federal statute  the Professional and Amateur Sports Protection Act ("PASPA"), which outlaws sports betting nationwide with the exceptions of Nevada (the largest beneficiary), Delaware, Oregon, and Montana.

Many industry employees --- as well as some politicians, such as NJ State Senator Ray Lesniak, who SBR interviewed two months ago -- believe that there is a ton of hypocrisy behind the sports leagues and TV networks unwavering support for daily fantasy sports betting, but not traditional sports betting.

With traditional sports betting where a player is wagering against a bookmaker, the perception is that a player's chances might actually be better than playing in massive entry fields where the odds may actually be stacked against the average Joe.

is that it opens the door for the possibility of a repeal, or at the very least a softened stance toward all things sports betting, including online sports betting in the United States.

Sportsbook Review will keep readers covered on the status of fantasy sports betting in the US and the issue of legality.

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