Ahead of hearing, DraftKings and FanDuel file opposition to New York Attorney General's motion

Ahead of a Wednesday hearing, DraftKings and FanDuel filed their opposition to a motion from New York Attorney General Eric Schneiderman seeking a preliminary injunction.

Schneiderman filed his motion last week to keep the daily fantasy sports companies from operating in the state on the grounds that they constitute illegal gambling.

DraftKings’ response contends that daily fantasy sports (DFS) are legal and have been for the past several years while operating in the state.

Both DraftKings and FanDuel argue that DFS are a contest of skill and that chance is not a material element of the contests, which is required to meet the definition of gambling in New York and asserted in the state’s filings.

They draw comparisons to season-long fantasy sports, which are not illegal.

“If any illegal activity were taking place, it would have to cease,” Fan Duel’s response states, “but since FanDuel’s business is completely lawful, it has a right to continue that business without interference from officers of the State.”

The companies’ litigation with Schneiderman began after the attorney general sent a cease and desist letter earlier this month. DraftKings and FanDuel responded with a lawsuit in New York Supreme Court, and Schneiderman filed his lawsuit last week.

The DFS companies and Schneiderman will be in court on Wednesday before Justice Manuel Mendez.

“DraftKings merely seeks to preserve the status quo,” the company’s response states. “DFS contests have been played in New York since 2007, and the NYAG has never once asserted they were unlawful— until now. There is no immediate threat to public health or safety.”