DraftKings and FanDuel have maintained their offerings to New York players, after a ruling by acting Supreme Court justice Gerald Connolly on 26 October that DFS is illegal in the state.
Despite a 2016 law maintaining DFS is a game of skill, Connolly overruled the decision. However, he advised that DFS could be exempt from current legislature, allowing the ‘big two’ firms to continue serving the booming market.
“We are pleased that the court upheld the New York legislature’s decision to decriminalise daily fantasy sports contests and that DraftKings can continue to offer their services to players,” said DraftKings counsel David Boies.
“We are continuing to study the court’s decision invalidating the regulatory structure and are committed to working with the legislature.”
The case was brought by an anti-gambling coalition seeking to revoke the 2016 law, insisting the legislative change required a public referendum to enact a constitutional amendment.
The 2016 decision was made a matter of months after then-Attorney General Eric Schneiderman issued cease and desist orders to DraftKings and FanDuel seeking to halt operations in the state.
Though the immediate implications for the US DFS market are unclear, with both market leading firms continuing to operate, the decision will now be put before current Attorney General Barbara Underwood.
The case is expected to be the first in a long line of appeals by both operators and opponents, with NY Gaming Commissions already reviewing the decision in anticipation of significant debate on the wide-ranging constitutional question.