A New York judge has ordered daily fantasy sports sites DraftKings and FanDuel to shut down in New York following a trial last month to determine whether the two companies violate the state’s gambling laws.
The news is a massive blow to the industry, which has taken off this fall alongside the NFL season thanks in large part to the companies’ spending hundreds of millions on advertising to garner attention.
Both DraftKings and FanDuel, which offer cash prizes to winners of fantasy sports competitions, are dealing with similar regulatory concerns in other states, including California. The ruling in New York will most likely set a precedent for other states to follow.
In statements on Friday, both FanDuel and DraftKings said they plan to appeal the New York decision.
“We are disappointed with the Court’s decision, and will immediately file an emergency notice of appeal in order to preserve the status quo,” the DraftKings statement reads. “Daily Fantasy Sports contests have been played legally by New Yorkers for the past seven years and we believe this status quo should be maintained while the litigation plays out.”
DraftKings and FanDuel aren’t officially dead in the state of New York. Friday’s decision is just a temporary one; the two companies will get another trial at a later date to determine whether or not they can operate in New York in the long term. But until that final trial takes place — and we don’t yet know when it will — the companies and the millions of dollars they could be making from New Yorkers are in limbo.
This article originally appeared on Recode.net.
