New York AG argues daily fantasy sports trial should move forward

The New York attorney general’s office called efforts by DraftKings and FanDuel to delay a trial into the legality of daily fantasy sports “a transparent and legally defective ploy,” according to court documents.

The filing, made by New York Assistant Attorney General Justin Wagner on Wednesday, comes ahead of a show-cause hearing in front of New York Supreme Court Justice Manuel Mendez on March 9. DraftKings and FanDuel argue that the trial Mendez would preside over should be put on hold until the appeal is decided.

“Not only do (DraftKings and FanDuel) overlook the ravages of gambling on New York communities highlighted by the court in its decision, they ignore the basic precept that justice delayed exacts its own price,” Wagner wrote.

Mendez approved the injunction sought by New York Attorney General Eric Schneiderman to keep the sites from operating in the state in December, but an appellate judge the same day issued an emergency stay. That stay was later made permanent, meaning it will be in place until the appeals process concludes.

The appellate court isn’t scheduled to hear oral arguments in the case until May at the earliest and a decision isn’t likely to be announced for several weeks afterward. Sports and gambling law attorney Daniel L. Wallach told USA TODAY Sports that it's "highly unlikely" that DraftKings and FanDuel will be able to convince Mendez to put the trial start date off.

Wallach added that it is in the daily fantasy sites’ interests to delay an outcome as long as possible.

“A loss in the New York court system could set in motion a chain-reaction series of events that could threaten their business model,” Wallach said. “The sports leagues, media partners and payment processors might reevaluate their association with the daily fantasy sites given the elevated legal risk. So, nothing good can come out of expediting this case, at least from the perspective of DraftKings and FanDuel.”

New York originally filed a lawsuit against DraftKings and FanDuel in November, contending that sites violate state gambling laws. The state is also pursuing restitution and damages.