DraftKings and FanDuel agree to cease operations in New York

Infamous daily fantasy sports websites DraftKings and FanDuel have agreed with New York Attorney General Eric Schneiderman to cease operations in the Empire State.

As part of the agreement, neither site will be operative in New York until September at the absolute earliest, when New York’s Supreme Court Appellate Division hears an appeal over the injunction against both companies. Under the agreement, both DraftKings and FanDuel will still be allowed to run free games in New York.

This agreement comes at a tumultuous time for both websites. Attorneys general in a number of states, including Hawaii, Illinois and Texas, have denounced the sites as illegal gambling and thus the sites’ numbers have taken a huge hit.

But the agreement that both DraftKings and FanDuel have with Schneiderman is interesting because it offers an interesting incentive. Should the court rule against them, Schneiderman will not pursue his case against the websites any further. New York’s state Senate is also weighing a bill that would levy a 15 % tax on revenue from the sites.

Either way, the months leading up to the appeal are going to be interesting, so stay tuned to Campus Sports for further updates on this story!

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*Featured Photo (above) credit to USA TODAY Sports