The Real Deal New York

Under-fire DraftKings will sublease its New York office

Decision unrelated to AG's legal action, reps said

January 08, 2016 12:33PM

400 Lafayette Street in Noho and DraftKings’ mobile phone app

Fantasy sports website DraftKings, which is being put through the ringer by New York Attorney General Eric Schneiderman, will leave the Noho digs that it leased just a few months ago.

The firm will sublease its 23,500-square-foot space at Alvin Flaster’s 400 Lafayette Street in Noho, which the company leased in June.

In November, DraftKings and FanDuel – another billion-dollar fantasy sports site – were ordered to cease operations in New York State by the AG’s office, which accused them providing illegal gambling services.

A spokesperson for Draftkings denied that the decision to vacate the office was related to the company’s legal troubles.

“We have made an operational decision to sublease our space at 400 Lafayette Street,” a spokesperson told Business Insider in an email. “This is a business decision and we are committed to continued operations in New York moving forward.”

DraftKings had sought to sublease 10,500 square feet at the space, but changed its mind in November, choosing to occupy the whole area.

The company is asking $72 per square foot. The asking price that DraftKings received was in the high $60s per square foot.

FanDuel, the other company targeted by Attorney General Eric Schneiderman, signed a lease in September for 41,000 square feet at Rockrose Development’s 300 Park Avenue South. [BI]Ariel Stulberg

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