A New York Supreme Court judge has upheld an injunction calling for fantasy sports and eSports sites FanDuel and DraftKings to stop conducting business in the state.
Judge Manuel Mendez today ruled that Attorney General Schneiderman's original injunction, banning both companies from operating in New York, must be upheld.
FanDuel and DraftKings had attempted to overturn Schneiderman's verdict, which found that both firms are running unlicensed, and thus, illegal, gambling operations.
"We are asking the New York Supreme Court to rule that the Attorney General’s cease-and-desist letter is unconstitutional, an abuse of discretion, and simply wrong," read a statement from DraftKings, reprinted by Re/code earlier this year.
New York isn't the first state to clamp down on fantasy sports, with Nevada's Gaming Control Board also telling FanDuel and DraftKings to obtain gambling licenses after deciding that betting on daily fantasy sports constitutes gambling.
Update: Hours after the New York Supreme Court ruling, ESPN reports that an apellate court judge granted DraftKings and FanDuel an emergency temporary stay that allows them to continue operating in the state.
The stay is likely to hold through the end of the year, and the case is expected to go before a panel of apellate judges in 2016.