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An electronic ad for the DraftKings sports site hangs on Madison Square Garden in New York.
Photo:
Mark Lennihan / Associated Press
A state judge in Albany harmed New York's fantastic sports companies on Friday by saying that their daily competitions were a form of gambling that the state constitution banned.
The ruling overturned a 2016 law signed by Governor Andrew Cuomo that offers of sites such as DraftKings and FanDuel were authorized address games. Both companies allow players to buy in pools where they build fantastic lists of sports personalities and win prizes based on their performance. They said the games were not betting on the game because they relied on the skills of the players.
A law was introduced and promulgated after former Attorney General Eric Schneiderman sued the companies in 2015. At the trials, that year, FanDuel estimated that there were 600,000 users in New York, about 10% of its total clientele.
The case of Mr. Schneiderman was put on hold to give the legislator a chance to act and Mr. Cuomo, a Democrat, signed the bill in August 2016. The law stated that daily fantasy sports do not work. Were "not games of chance" and "did not constitute gambling" under the state's criminal law. However, four anti-enamel lawyers sued in 2017.
The acting Supreme Court Judge, Gerald Connolly, said in his ruling on Friday that an 1894 amendment to the state constitution gave a broad definition of prohibited gambling activities. Thus, even though daily fantasy sports competitions are "dominated by skills, rather than by chance", they actually play.
However, Justice Connolly ruled that legislators had the discretion to exclude daily imaginary sporting competitions from the state's Criminal Code section on gambling, as provided for by the 2016 Act.
The immediate effect of the decision is not clear. Neil Murray, a lawyer for the plaintiffs, said in an email that the fantastic sports companies "should stop, the court having unequivocally declared that [daily fantasy sports] are games of chance prohibited by the Constitution and therefore, the State can not adopt a law purporting to legalize and regulate it. "
DraftKings and FanDuel spokespersons did not immediately respond to requests for comment. A spokesman for Mr. Cuomo, who, along with the state gaming commission, was named as a defendant in the case, said the state was "reviewing the decision".
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