A New York appeals court has blocked the threatened shutdown of daily fantasy sports sites DraftKings and FanDuel, just hours after a judge ordered them on Friday to temporarily stop taking entries in the state.
Judge Manuel Mendez’s order came at the request of New York Attorney General Eric Schneiderman, who claims that the daily contests for cash are a form of gambling outlawed by state law and should be banned.
Both DraftKings and FanDuel came under scrutiny earlier this year amid allegations of insider trading between the sites after a DraftKings employee won $350,000 in a daily fantasy contest on FanDuel during Week 3 of the NFL season. It was suspected that he had access to data showing which football players were the hottest to own that weekend.
In the aftermath, ESPN pulled sponsored content for DraftKings from its programs.
Pamela Chelin contributed to this report.