[Editor’s note: FanDuel is an advertiser of PFT and PFT Live on NBC Sports Radio. Also, NBC Sports has an equity stake in FanDuel.]
On Wednesday, Judge Manuel Mendez heard arguments in the effort to secure a finding that daily fantasy violates New York law. According to Eric Fisher of SportsBusiness Daily, Judge Mendez said a decision will come “very soon.”
The question is whether Judge Mendez will issue a preliminary injunction banning daily fantasy in New York pending the resolution of the litigation regarding whether daily fantasy violates New York law. Via Fisher, the New York Attorney General’s office argued (while reading exclusively from a script) that daily fantasy is gambling because the players have no control over the outcome of the game, and that it’s essentially an alternative method for betting on sports.
Well-known attorney David Boies, who represents DraftKings, argued that the Attorney General’s office made a fatal error by targeting daily fantasy only and not season-long fantasy, given the similarity of the games. He also argued that daily fantasy requires even more skill than season-long fantasy, that the Attorney General’s office is essentially trying to “destroy” DraftKings’ business, and that it would be extraordinary to shut down daily fantasy without giving DraftKings and FanDuel a full day in court to develop evidence and to make arguments.
Via Fisher, the Attorney General’s office also pointed to the prevalence of DFS ads and the social ills that can arise from wagering money on these activities. FanDuel’s counsel responded by pointing out that state-sponsored lotteries create the same potential problems.
The hearing comes only a few days after Commissioner Roger Goodell explained that the NFL sees a “big distinction” between season-long fantasy and DFS, and that “[s]eason-long fantasy is [what] many people probably play in this room and it’s fun, it’s social, it’s an opportunity to enjoy the game,” via USA Today. “We encourage our kids to do it and they have clubs at school and it’s a way to connect people. And we think that’s a wonderful way. Daily fantasy’s taken a little different approach, and it’s one that we have not been as active in that. We want to make sure that we understand how it’s going to be done.”
The first question is whether it will be done, as in finished. If outlawed in New York, other stats could follow suit — and the entire industry could disappear.