NYSGC discontinues regulation of “Illegal” Daily Fantasy Sports websites

The New York State Gaming Commission (NYSGC) has quietly stopped the regulation of daily fantasy sports websites operating in the state.

The NYSGC deleted all references to the DFS industry from its website. A NYSGC spokesman said it no longer had a role in regulating the contests. The move could lead to chaotic results, with one commentator predicting New York to become of the Wild West of daily fantasy sports industry.

In late October, the New York State Supreme Court issued a ruling that DFS contests were illegal gambling under the state constitution and could not be defined as games of skill. The court basically made void the 2016 law signed by Governor Andrew Cuomo that legalised and regulated DFS games.

The industry is likely to remain unregulated till the state appeals against the ruling.

An anti-gambling group had also moved the court, arguing that DFS could only be legalised by a public referendum to change the constitution.

The current situation is a bit problematic: DFS is illegal in New York, but offering it has been decriminalised. It remains illegal, so it cannot be licensed or taxed.