New York Supreme Court Rules Daily Fantasy Sports Unconstitutional

The future of daily fantasy sports in New York -- including those "run by companies such as DraftKings and FanDuel -- is in question" after acting state Supreme Court Justice Gerald Connolly ruled those types of companies "violate the state constitution," according to Jon Campbell of the Westchester JOURNAL NEWS. Connolly on Friday ruled "in favor of anti-gambling organizations that had challenged" the state's '16 law allowing and regulating DFS, "deciding the games directly violate the gambling ban in the state constitution." The immediate impact of the ruling was uncertain, and a spokesperson for New York Gov. Andrew Cuomo said that the ruling was "still under review" as of last night. Connolly's ruling was "something of a split decision: While he declared the games unconstitutional, he also ruled state lawmakers were within their rights to take daily fantasy sports out of the state penal law, which penalizes illegal gambling." If the state appeals the ruling, it is "likely to receive a stay, which would allow" companies like DraftKings and FanDuel to "continue to offer their contests in New York while the court proceedings go ahead" ( LOHUD.com, 10/29 ). N.Y.-based lawyer Josh Schiller, who represents DraftKings, said that the worst-case scenario for the company would involve a "referendum so that the state can regulate it" ( N.Y. POST, 10/30 ).