A judge in New York has ruled that fantasy sports are gambling, placing the industry in doubt for one of the biggest markets in the country. The Albany judge said that daily fantasy sports (DFS) should be illegal in the state.
Acting Supreme Court Justice Gerald Connolly made the ruling on Friday in response to a lawsuit submitted by anti-gambling organizations, according to the Journal News. Connolly ruled that a law dating back to 2016 that allows DFS to operate is in violation of the gambling ban in the state constitution.
The lawsuit was launched after the state’s lawmakers legalized DFS as games of skill just months after Eric Schneiderman, then Attorney General, had issued cease and desist orders against DraftKings and FanDuel in 2015, forcing the operators to temporarily halt operations in the state.
UPDATE: In 2022 a Court of Appeals ruled that New York fantasy sports were skill-based and therefore not subject to state gambling laws. Therefore, they are perfectly legal. The decision came through the slimmest of margins, with the Judges reaching the ruling in a 4-3 vote, saying the games were “lawful skill-based competitions for prizes”
The original story about how fantasy sports are gambling was originally published on the iGaming Business website.