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DraftKings and FanDuel Can (Temporarily) Operate in New York After All

A judge's stay gives the two companies some relief until January.

Justin K. Aller/Getty Images

Just hours after a New York judge ordered daily fantasy sites DraftKings and FanDuel to shut down operations in New York, another judge awarded the companies a temporary stay, meaning they can continue to operate, likely through the month of January, according to Josh Schiller of Boies, Schiller & Flexner, the law firm representing DraftKings.

The decision is a win — albeit a temporary one — for the companies, which have been fighting New York Attorney General Eric Schneiderman’s claims that the sites violate the state’s gambling laws.

The preliminary injunction handed down Friday — the one that ordered the two companies to shut down — is still relevant. Both DraftKings and FanDuel will fight that injunction in front of a group of appellate judges sometime in the new year, at which point they may have to file a formal appeal to continue operations. But in the meantime, they can accept paid entry fees from New York fantasy sports players, which is huge considering the NFL season is still in full swing (football is arguably the most popular sport in the world of fantasy sports).

FanDuel, which ceased New York operations last month, has not yet decided whether it will reopen following the stay. DraftKings has continued to operate throughout the legal battle, and says it will keep operating.

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