The New York Supreme Court has thrown the future of Daily Fantasy Sports (DFS) in the state into a state of confusion. This comes after a ruling by the court that DFS constitutes illegal gambling in the state. This means that the future for the likes of FanDuel and DraftKings in New York is uncertain at this time.
The New York Supreme Court has overturned a 2016 ruling that said Daily Fantasy Sports were games of skill. This ruling throws the future of DFS in the state in jeopardy
New York Ruling Overturns 2016 Judgement
The ruling occurred earlier this week, when the judge ruled that DFS were not games of skill and were to be considered illegal gambling under New York’s constitution. This ruling overturns a 2016 law, which was signed by Governor Andrew Cuomo, that legalized and regulated DFS within the state.
However, to make matters more complicated, the judge stated that the state was within its rights to exempt DFS from the gambling laws back in 2016. This makes the impact of the ruling at this time unclear, and no one is entirely sure how to proceed. The governor’s office itself is currently trying to figure out how the ruling will impact DFS going forward.
DFS Future in New York Unclear
The case was brought forward by a group called Stop Predatory Gambling. It believes that the ruling means Draftkings and Fanduel will need to stop offering DFS in New York until the state appeals. However, Draftkings believes that ruling allows the companies to continue operation, but has committed to working with lawmakers. Back in 2016, DFS were exempt from New York’s gambling laws, after they were declared games of skill. The ruling was a great help for FanDuel and DraftKings, who were involved in an ongoing legal battle in the state.
Following the 2016 ruling, each company paid $6 million to settle all litigation. However, some believed the whole situation had not been done correctly, as they claimed there should have been a public referendum. Stop Predatory Gambling stepped forward and sued to get the law rescinded. We will keep our readers updated as New York figures out how to deal with these recent events.