Fantasy sports in America used to be a popular way of entertainment for local citizens. However, the future of the sport is set to change after the appellate court ruled that a law on fantasy sports legalization violates a constitutional ban on gambling. It makes leading operators, like FanDuel and DraftKings, think about their future in New York.
The appellate court followed the decision of the lower court stating that the Legislature unlawfully approved the activity by sorting it in the group of skill games, rather than the group of the game of chances.
As observed by the attorney Neil Murray, who represents the lawsuit group:
“We’re very gratified by the decision. We think the integrity of the New York State Constitution has been upheld.”
New York governor, Andrew Cuomo, authorized the Fantasy Gambling Bill in 2016. It allowed operators like DraftKings and FanDuel to have activity in the state. Both companies later agreed to stop the operation in NY following the decision that their business represents illegal gambling.
Stop Predatory Gambling group submitted the lawsuit questioning the constitutionality of the law which legalized fantasy sport. The lawsuit has been submitted following the claims of four plaintiffs who experienced personal or family damage from gambling debts.
On this occasion, National Director of Stop Predatory Gambling, Les Bernal observed:
“The reason New York state has a constitutional prohibition on commercialized gambling promoted by the state is that it’s a form of consumer financial fraud. This isn’t about people having a Super Bowl office pool. This is about state government cheating and exploiting people, contributing to the huge debt culture in the state.”
The same case has been stated by Attorney General spokesman, Letitia James. According to her words:
“Staff are reviewing the decision and haven’t decided whether it will be appealed to the state’s highest court, the Court of Appeals.“
She added:
“We believe the legislative action authorizing fantasy sports in New York was constitutional and in the best interests of taxpayers and fantasy sports fans.”
Source:
“Court Rules Fantasy Sports Contests Are Illegal Gambling“, time.com, February 7, 2020.