Fantasy sports contests in New York State have now been declared to be constitutional. The New York State Court of Appeals has reversed a previous law on the books that banned fantasy sports contests.
These games allow players to compile a list of athletes in a particular sport and use individual performance statistics to declare a game winner.
The New York high court ruled that fantasy sports leagues that award prizes to participants are sufficiently skill-based and they do not violate the state’s anti-gambling laws.
A statement issued by the court said: “Today, we clarify that the historic prohibition on ‘gambling’ [in the New York Constitution] does not encompass skill-based competitions in which participants who exercise substantial influence over the outcome of the contest are awarded predetermined fixed prizes by a neutral operator.”
Prior to this decision, fantasy sports contests similar to the ones operated by DraftKings and FanDuel had been declared unconstitutional. A lower court had issued the previous ruling in favor of the 2016 law. The state appealed soon after.
The ban issued by the lower court did not apply to mobile sports betting. The state of New York opened for legalized mobile sports betting. New York mobile sports betting received legislative approval in April 2021 and went live in January 2022.
Following the recent boom of sports betting throughout New York since going live two months ago, the Empire State now will also consider additional legislation that will further open the market. Senator Joseph P. Addabbo Jr. introduced Bill S8412 last month, which would legalize iGaming in New York if passed.
