Following five years of litigation, the New York State Court of Appeals has ruled that Daily Fantasy Sports (DFS) are constitutional, overturning two lower court decisions to the contrary.
New York Court of Appeals Rules that DFS Contests are ConstitutionalThe DFS constitutionality case dates back to 2016 when a lawsuit ruled that DFS contests were “lawful skill-based competitions for prizes under our precedent.” However, as the state moved to legalize this form of gambling and open a regulated market, legal challenges brought the matter to two lower courts. This resulted in two decisions ruling against DFS operations in New York deeming them an unconstitutional practice.
New York Court of Appeals Rules that DFS Contests are Constitutional New York Court of Appeals Rules that DFS Contests are Constitutional“Evidence presented to the legislature indicated that outcomes in (Interactive Fantasy Sports) contests are predominantly based on skill. Studies showed that skilled players achieve significantly more success in IFS contests and that rosters of skilled human players were more successful in IFS contests than randomly generated lineups over 80% of the time.”
State Senate Gaming Committee Chair Joe Addabbo spoke out in favor of the ruling. He feels that revenues for DFS contests will increase now as companies can invest in the market knowing that their operations can no longer be paused without warning. Addabbo said:
New York Court of Appeals Rules that DFS Contests are ConstitutionalSeveral other states, including Louisiana and Florida, have recently come through constitutional challenges to their Daily Fantasy Sports laws unscathed.
The news comes as sports betting in New York continues to gather pace following the legalization and subsequent launch of mobile sports betting. In their first three weeks of online sports betting operations, mobile and retail sportsbooks combined to set an all-time monthly record for the USA, accepting over $1.68 billion in wagers.
The state has also made moves to establish a regulated online casino market with two bills introduced in both chambers of government.
Ciaran has been working within the Gambling Industry as a deep analyst since 2019. His deep knowledge and understanding of all the gambling regulations, and processes makes him a true asset, and an always valuable point of view for Gambling Industry News, allowing us to cover every topics from a brand new perspective.