FanDuel and DraftKings Must Stop Doing Business in New York

Another blow to daily fantasy sports betting

Update | Friday, 4:52 p.m. ET: An appellate court judge has granted an emergency stay for the two sites. "We remain open for business for the hundreds of thousands of New Yorkers who enjoy daily fantasy sports," said Randy Mastro, an attorney representing DraftKings told ESPN.

Original story: Justice Manuel Mendez of the New York State Supreme Court has ruled the two leading daily fantasy sports sites, FanDuel and DraftKings, must stop taking bets from consumers in the state, upholding last month's order from state attorney general Eric Schneiderman. Both companies have 30 days to answer to the charge that their businesses constitute illegal gambling.

The two daily fantasy sports (DFS) sites stormed television earlier in the fall with an onslaught of advertising. In the month of September alone, DraftKings spent $65 million on U.S. advertising while FanDuel spent $53 million, according to analysis from MoffettNathanson. That made up 3 percent of total advertising revenue across 14 broadcast and cable networks for the month.

Last month, following Schneiderman's ruling, FanDuel founder and CEO Nigel Eccles told Adweek advertising was inevitable but adding the ad blitz may have drawn unwanted attention from state regulators. "Advertising was a very natural course," Eccles said. "It's fair to say it put us on everyone's radar as we became mainstream."

Here is the ruling:

NY Supreme Court FanDuel/DraftKings