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The sites are currently appealing a ruling by the New York Attorney General Eric Schneiderman who said daily fantasy sports is a form of gambling. Schneiderman has said that the sites violate state laws against gambling, calling daily fantasy a game of chance and not a game of skill.
"Our review concludes that DraftKings'/FanDuel's operations constitute illegal gambling under New York law," Schneiderman wrote in a letter.
Previously, a judge had ruled that DraftKings and FanDuel could not operate in New York for the duration of the ongoing case. However, that ruling was quickly overturned when a judge granted the pair an emergency stay.
The latest ruling upholds that stay.
The attorney general's investigation began after a report surfaced that said employees of the websites were winning a lot of money betting at the rival's website.
Jason Robins, CEO of DraftKings, has said that daily fantasy is not gambling, arguing that it is a game of skill, not chance.
"If you randomly picked a fantasy lineup and played against someone who put thought into it, they would beat you 9 times out of 10, if not more," Robins argued on ESPN. "So [daily fantasy is] pretty different, I think, from sports books where even though there is some advantage that can be had, the edges are so minimal that it is primarily chance-based."
Several other states have also banned daily-fantasy sports to some degree, including Nevada, where DraftKings and FanDuel were order to shut down in October.