Daily Fantasy Sports Ruled Illegal In NY By Appeals Court
A New York appeals court ruled that DFS contests -- like FanDuel and DraftKings -- "violate the state constitution's ban on gambling and are therefore illegal," according to Don Cazentre of the Syracuse POST-STANDARD. The ruling, which upholds an '18 lower court decision, now is "likely headed to the state's top court -- the Court of Appeals." At issue is whether DFS contests are a form of gambling "based on chance, rather than skill." In '16, state lawmakers attempted to make DFS legal by "reclassifying it as a game of skill instead of chance" (Syracuse POST-STANDARD, 2/7). In N.Y., Michael Levenson notes the ruling was based on the court's finding that, while DFS contests "require skill, they also involve a degree of chance -- such as whether a player might have an injury or illness or be affected by bad weather or poor officiating." Research and consulting firm Eilers & Krejcik Gaming's Managing Dir Chris Krafcik said that New York, with its "large, sports-crazed and relatively wealthy population, is easily one of the three largest daily fantasy sports markets in the United States, alongside California and Texas" (N.Y. TIMES, 2/7).