Compliance Updates

NY Court Rules Online Fantasy-sports Betting is Unconstitutional

Published

5 years ago

February 10, 2020

Niji Narayan

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A New York appellate court has ruled that online fantasy sports betting is unconstitutional in the state.

“We recognize that the legislature was sympathetic to and supportive of IFS (interactive fantasy services) participants. Nevertheless, we have rejected the legislature’s explicitly stated basis for the removal of IFS from the Penal Law definitions of gambling,” the appellate panel wrote in its decision.

The ruling by the New York State Appellate Division poses a new challenge for daily fantasy sports peddlers like FanDuel and DraftKings who seek to operate in the Empire State.

At issue is a 2016 amendment to Racing, Pari-Mutuel Wagering, and Breeding Law that declared that online fantasy sports did not constitute gambling and could thus be allowed.

A group of anti-gambling advocates sued over the law arguing that it violated the constitution. In October 2018, Albany Supreme Court Justice Gerald Connolly agreed with them and declared the 2016 amendment “null and void.”

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Niji Narayan

Niji Narayan has been in the writing industry for well over a decade or so. He prides himself as one of the few survivors left in the world who have actually mastered the impossible art of copy editing. Niji graduated in Physics and obtained his Master’s degree in Communication and Journalism. He has always interested in sports writing and travel writing. He has written for numerous websites and his in-depth analytical articles top sports magazines like Cricket Today and Sports Today. He reports gaming industry headlines from all around the globe.