By Peter Gleason

Daily fantasy sites are hanging by a thread in New York state, with FanDuel halting business following the filing of a lawsuit from New York Attorney General Eric Schneiderman earlier this week.

DraftKings chose to continue despite the ongoing litigation.

In a teleconference with reporters on Friday, David Boies, counsel from DraftKings, explained the Boston-based company wanted its day in court before interrupting its business in the state.

“I think that we have believed that the company is entitled to and indeed has a responsibility to investors, employees and customers to have the court decide this and simply not stop business prematurely before there has been a hearing and an actual legal decision,” said Boies, chairman of Boies, Schiller & Flexner LLP.

“That’s particularly true because of the many years in which the company has operated in New York. All we are doing is continuing the status quo. We’re not making any changes. We’re just continuing the status quo until there’s been a legal decision.”

Earlier this month, Schneiderman sent a cease and desist letter to the two daily fantasy sports (DFS) companies. In response, they filed a lawsuit against him in New York Supreme Court last week and requested a temporary restraining order.

Justice Manuel Mendez denied that on Monday and set a hearing for Wednesday.

On Tuesday, Schneiderman filed his own lawsuit against the companies, alleging that they are illegal under New York’s gambling laws, and sought a preliminary injunction to prevent them from operating in the state.

FanDuel, which is based in New York, told users that day that it would stop accepting entries from people in New York.

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