Daily Fantasy may have to take a break in New York. Say it ain’t so. Everyone in New York thought they were in the clear with their DraftKings and FanDuel Apps. Firing in their lineups with a grin on their faces. Here we go again New York.
The future of daily fantasy sports in the Empire State is in doubt now after a judge ruled it violates the state constitution yesterday. The ruling means companies like DraftKings and FanDuel may have to stop doing business in New York, leaving DFS players out in the cold.
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Acting Supreme Court Justice Gerald Connolly ruled in favor of anti-gambling organizations that had challenged the state’s 2016 law allowing and regulating daily fantasy sports, deciding the games directly violate the gambling ban in the state constitution.
The immediate impact of the ruling is still unclear. Connolly’s ruling declared the games unconstitutional but he also conceded state lawmakers were within their rights to take daily fantasy sports out of the state penal law, which penalizes illegal gambling.
Bottom Line, companies like DraftKings and FanDuel will likely have to shut down their games in New York, at least until the state appeals. Not only do both companies deal in DFS, they are both now operating sportsbooks across the Hudson river in New Jersey and other states. So now their situation has become more complicated since the law to allow daily fantasy sports in New York was put in place two years ago.
If the state appeals, it’s likely to receive a stay, which would allow DraftKings and FanDuel to continue to offer their contests in New York while the court proceedings move forward.
As of Monday evening, both FanDuel and DraftKings were still accepting entries from DFS players in New York, who were all too eager to fire in their lineups for the Monday Night Football game between the Pats and the Bills. However, the future of DFS in New York is as uncertain as ever.