Daily Fantasy Sports Firms Ordered to Exit New York State

Published Saturday, December 12, 2015 - Online-Casinos.com
Daily Fantasy Sports Firms Ordered to Exit New York State

The continuing drama unfolding in the USA regarding the legality of daily fantasy sports betting has taken another interesting twist in New York, the Empire state. The Daily fantasy sports (DFS) operators DraftKings and FanDuel have been ordered by a New York court to cease conducting business in the state.

Daily fantasy sports are an accelerated variant of traditional fantasy sports that are conducted over short-term periods, such as a week or single day of competition, as opposed to those that are played across an entire season. New York Supreme Justice Manuel Mendez granted state Attorney General Eric Schneiderman’s request for an injunction blocking the operators from operating in the state of New York. The operators have been given 30 days to exit New York. The DraftKings’ lawyer said that the firm intends to file emergency appeals against the order. FanDuel is based in New York and DraftKings is headquartered in Boston but there is no mention of the other operators such as, Yahoo! and CBS Sports offering daily fantasy sports betting.

The New York Penal Law section 225.00[1], defines ‘Contest of Chance’ to mean “any contest, game, gaming scheme, or gaming device in which the outcome depends in a material degree upon an element of chance, notwithstanding that skill of the contestants may also be a factor therein”. The ruling called on this interpretation of the law.

Mendez added: “The language of Penal Law 225.00 is broadly worded and, as currently written, sufficient for finding that DFS involves illegal gambling.” Mendez said that the “UIGEA language exempting fantasy sports has no corresponding authority under New York State law as currently written” and the exception found in UIGEA “does not apply under the current New York statutory language”.

David Boies, counsel to DraftKings said, “Daily fantasy sports contests have been played legally by New Yorkers for the past seven years and we believe this status quo should be maintained while the litigation plays out.”





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