DraftKings lawyer defends fantasy sports gaming

ALBANY -- An attorney for DraftKings said Friday the company's fight with Attorney General Eric T. Schneiderman is not about whether daily fantasy sports is "gambling in a colloquial sense" but "whether it is unlawful gambling" under New York law.

David Boies, high-profile lawyer who represented Al Gore in the disputed presidential election of 2000, said fantasy sports companies had been operating legally in New York for several years and the only thing that has changed is Schneiderman's opinion. The attorney general now is trying to shutter DraftKings and FanDuel, the two dominant players in the rapidly expanding fantasy sports business, contending they conduct illegal gambling and bookmaking.

Boies, in a conference call with reporters, contended that "if you are able to control the game or influence the game . . . then it is not gambling under New York law."

Schneiderman's office didn't comment Friday. The Democrat has called daily fantasy sports "nothing more than a rebranding of sports betting" and "plainly illegal."

Schneiderman has sued the two companies and asked a state judge to issue an injunction to immediately close them down in New York. The sides are due to appear in court Wednesday and expected to file legal briefs Monday.

It's unlikely that Schneiderman could win an injunction as soon as Wednesday, but if he does, DraftKings would consider an immediate appeal because a shutdown, even a short one, could "irreparably" damage its business, Boies said.

New York-based FanDuel temporarily has suspended any New Yorkers from playing its games, citing, in part, Schneiderman's pressuring of the company's payment processors. In contrast, Boston-based DraftKings successfully sought a restraining order in Massachusetts that prevents payment processors for halting business with the company.

Boies said DraftKings has been operating for four years in New York and FanDuel for eight without previous problems.

"Never until 10 days ago had anyone suggested, hinted or asserted there was anything illegal about anything FanDuel and DraftKings were doing," Boies said. "I think the attorney general has obviously changed his mind. . . . He's not entitled to unilaterally change the law."