DraftKings, FanDuel granted emergency stay to continue in N.Y.

— -- Less than six hours after Justice Manuel Mendez granted New York Attorney General Eric Schneiderman a temporary injunction that would stop DraftKings and FanDuel from doing business, an appellate court judge gave the two daily fantasy sites an emergency temporary stay that will allow them to accept entries from New Yorkers.

Randy Mastro of Gibson Dunn, outside council for DraftKings, told ESPN.com that the stay will be in place likely until the end of the calendar year. Eventually, both sides will go before a panel of four or five appellate judges, Mastro said.

"We remain open for business for the hundreds of thousands of New Yorkers who enjoy daily fantasy sports," Mastro said.

DraftKings has stayed open in New York throughout the challenges made by the attorney general, but FanDuel shut down within the state on Nov. 17. It was not immediately known if the site was going to open up its doors to New York residents.

Friday's ruling does not negate the interpretation made by Mendez that DraftKings and FanDuel were illegally operating within the state. Mendez agreed with Schneiderman's contention that the companies are operating illegal gambling sites based on how New York law defines gambling.

Lawyers for DraftKings and FanDuel argued that their clients could not have violated gambling statutes because they were taking in entry fees and not wagers. The main support for their contention was a New Jersey case -- an unpublished decision in Humphrey v. Viacom (2007) -- which Mendez disregarded, saying that what they took in were in fact bets under New York law.

"New York State penal law does not refer to 'wagering' or 'betting,' rather it states that a person, 'risks something of value,'" Mendez wrote. "The payment of an 'entry fee' as high as $10,600 on one or more contests daily could certainly be deemed risking 'something of value.'"

Schneiderman had previously said that he was interested in having DraftKings and FanDuel undo their deals with teams within the state and stop advertising. Apron signage for the companies at New York Knicks and Brooklyn Nets games must come off for national games.

The NBA owns equity in FanDuel, and Major League Baseball and the NHL own equity in DraftKings. The NFL does not own equity in either daily fantasy operator, but almost all the league's teams have advertising partnerships with one of them. New England Patriots owner Robert Kraft and Dallas Cowboys owner Jerry Jones also own equity in DraftKings.

At least 600,000 New Yorkers play daily fantasy on DraftKings and FanDuel, having put up more than $200 million in entry fees combined in 2015.

ESPN's David Purdum contributed to this report.