The state will challenge the appellate court’s decision to the Court of Appeals, the highest court in New York.
DraftKings and FanDuel will both continue to operate as the appeal is decided.
The New York State Appellate Division upheld a 2018 ruling by acting Supreme Court Justice Gerald W. Connolly who declared DFS to be a form of gambling, not a game of skill.
Connolly argued that state legislators violated a constitutional anti-gambling provision by legalizing DFS in 2016.
The New York State Gaming Commision presently states: “Interactive Fantasy Sports are games of skill in which contestants assemble a roster of athletes in a given sport and use the actual aggregated performance statistics of those athletes to determine the contest’s winner.”
According to the state’s constitution, New York voters must approve any expansion of gambling.
Following the appellate court’s ruling, DraftKings said in a statement: “We believe the legislative action authorizing fantasy sports in New York was constitutional and in the best interests of taxpayers and fantasy sports fans.”
FanDuel said: “We expect that there will be an appeal and we'll be able to continue to offer contests while that appeal is decided.”
