DraftKings and FanDuel can’t do business in the state according to DFS ban in New York.
DraftKings and FanDuel have 30 days to leave
Judge says DFS is ‘Contest of Chance’
Appeals are expected
New York Supreme Justice Manuel Mendez ruled that daily fantasy sites DraftKings and FanDuel can’t operate in New York State, US gambling news report. The DFS ban in New York will hurt these sites considerably, since a large base of players comes from the fourth most populated federal state.
DFS ban in New York is costly for operators
This comes after New York state attorney general Eric Schneiderman ordered that daily fantasy sites qualify as illegal gambling destinations according to US gambling laws
. The operators took the matter to court, since DFS ban in New York could be a huge blow for them.
According to the decision of Judge Mendez, the operators have 30 days to leave the state. However, emergency appeals are expected to come against the ruling, as DraftKings’ representative already revealed plans about such move.
DFS qualifies as ‘Contest of Chance’
Judge Mendez emphasized that New York gambling laws say, “Any contest, game, gaming scheme, or gaming device in which the outcome depends in a material degree upon an element of chance, notwithstanding that skill of the contestants may also be a factor therein”.
He added that, “The language of [New York] Penal Law 225.00 is broadly worded and, as currently written, sufficient for finding that DFS involves illegal gambling.”
DraftKings and FanDuel were referring to the Unlawful Internet Gambling Enforcement Act (UIGEA) when defended their business in New York, however Mendez argued that the “UIGEA language exempting fantasy sports has no corresponding authority under New York State law as currently written… [and the exception] does not apply under the current New York statutory language”.
DFS ban in New York is the beginning of the end?
Though the decision doesn’t affect directly the status of daily fantasy operators in other states, it can influence US gambling laws and regulations tackling internet betting and online gambling across the country. Moreover it is also important that DraftKings and FanDuel might lose a lot of players due to the DFS ban in New York. However, they are expected to appeal against the ruling.
David Boies, who is the Chairman of Boies, Schiller & Flexner and a counsel to DraftKings said, “We are disappointed with the Court’s decision, and will immediately file an emergency notice of appeal in order to preserve the status quo. Daily fantasy sports contests have been played legally by New Yorkers for the past seven years and we believe this status quo should be maintained while the litigation plays out.”
So, this is far from over, and it is even unsure whether New York players can finish this fantasy football season at DraftKings and FanDuel, or not.