Judge in New York rules DFS as unconstitutional

The Justice ruled in favour of organisations that challenged the decision from 2016 that regulated DFS in the state.

US.- Acting Supreme Court Justice Gerald Connolly has ruled in favour of anti-gambling organisations that had challenged the law from 2016 that allowed and regulated daily fantasy sports (DFS) in New York, and said that those games directly violate the gambling ban in the state constitution.

While the ruling took place late Friday, attorneys involved in the case received the news on Monday. The impact of the decision is still unclear, as Governor Andrew Cuomo said that the government is still reviewing the ruling.

Connolly said that while the games are unconstitutional, state lawmakers have the right to take DFS out of the state penal law, which penalises illegal gambling. “Based on all of the above, the Court finds and holds that the Constitutional prohibition upon authorisation or allowance of pool-selling, bookmaking or any other kind of gambling encompasses (interactive fantasy sports),” Connolly wrote in the ruling.

Neil Murray, attorney who represented the plaintiffs in the case, said that he considers that the ruling means that companies like DraftKings and FanDuel will be forced to shut down their operations until the state appeals, and if the latter decides to do so, it would allow them to continue to offer their games in the state while the court proceeds with the legal process.

“What the judge said is that the law that the Legislature passed purporting to legalise daily fantasy sports was unconstitutional and that daily fantasy sports is definitely gambling,” said Murray, according to Democrat & Chronicle.

A spokesman for the New York Gaming Commission also said that the agency was reviewing the decision, while representatives for both companies have yet to release a statement regarding the ruling.