Fantasy sports firm wins legal reprieve

By :- Sharia, On June 6, 2017 in ::-Featured

One of Scotland’s most successful technology start-ups has won a legal battle that allows it to continue trading until next month, but the company still faces accusations of illegal gambling, which could force it to close down.

FanDuel, a fantasy sports website that was founded in Edinburgh, was ordered by the Supreme Court last month to stop taking money from customers in New York after the state’s attorney-general said that the business amounted to an illegal gambling operation.

The company has received temporary reprieve after a New York appeals court ruled that it could stay open until the case is heard in January.

A statement posted on the FanDuel website announced: “An appellate court in New York granted our request for an emergency stay of the injunction. Based on the appellate court’s ruling, New Yorkers can continue to enjoy FanDuel contests while the legal process moves forward.”

The company added that the appeals court’s decision would be reviewed by a panel of judges early next month.

The company, which is valued at more than $1 billion, could see its business model collapse if more states follow the lead of the authorities in New York.

The case was brought by the state’s attorney-general, Eric Schneiderman, who had issued “cease and desist” orders to FanDuel and DraftKings, another leading fantasy sports company, which is based in Boston.

Mr Schneiderman accused the companies of being “the leaders of a massive, multibillion-dollar scheme to evade the law and fleece sports fans across the country”.

FanDuel charges players to take part in daily leagues, pitting fantasy teams in American football and other popular sports against each other for cash prizes.

The company was established as a start-up by Nigel and Lesley Eccles in 2009. The pair went on to raise tens of millions of pounds from investors, including nearly £3.5 million from Scottish Enterprise.

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