DraftKings and FanDuel got temporary reprieve after operations got suspended in New York

A Supreme Court Appellate Division judge allowed daily fantasy sports giants DraftKings and FanDuel to continue operating in New York through the New Year, after earlier being temporarily barred by Manhattan state Supreme Court Justice Manuel Mendez from taking play in the city.

Reuters reported the leading daily fantasy sports companies got a temporary reprieve to continue its operations in the location that brings them the most customers. New York State Appeals Court Judge Paul Feinman suspended the injunction granted earlier by Mendez, who stopped short on deciding if the games require skill or just chance. However, he ruled that it is highly possible that New York Attorney General Eric Schneiderman would prove that the companies' daily games are illegal if the issue is brought to trial.

The appeal filed by the two companies Friday gives them a short-term stay to stil do business in New York only up to January 4. After that date, a panel of judges will decide whether Mendez's injunction was right.

"We look forward to a full and fair hearing and are confident we will demonstrate clearly to the court why we should be able to continue to offer our DFS (daily fantasy sports) games in New York permanently," said DraftKings lawyer David Boies in a report from NBC News. FanDuel continued to say it would "work to bring our product back to sports fans around the state through our appeal and working with the legislature to enact sensible regulations for fantasy sports."

According to The Guardian, this dispute between the game makers and the attorney general emphasizes the issue of whether fantasy sports is gambling or not. For Mendez, the protection of the people is more important than the potential loss of business from the two giant gaming companies. He said a $10,600 entry fee on one of the daily contests can be considered risking something valuable, which is a definition of gambling based on New York laws.

However, according to DraftKings and FanDuel said their daily contests are highly competitive and are based on skills, not chance, which means they are not gambling.