New York DFS case moves into final stages with oral hearings
Court of Appeals to consider if Empire State legislature exceeded its authority in permitting fantasy operators
Officials in the New York Court of Appeals heard the first oral arguments in a case designed to determine whether Empire State legislators exceeded their authority in legalizing DFS.
In hearings on Tuesday, the court considered two prior rulings which claim the New York legislature acted illegally in 2016 by reclassifying DFS as a game of skill rather than a game of chance.
This case centers on assessing whether DFS is a game of chance, which if proven would make the reclassification illegal, as legalization of games of chance can only be undertaken via an amendment to New York’s state constitution.
Using this rationale, a group of private citizens have attempted to overturn the prior legislator change, winning both stages of prior court cases, leading to this final Court of Appeals hearing.
Seven justices sit on the New York Court of Appeals panel, with Justice Eugene Fahey highlighting the dilemma facing the court in questions to the state’s attorney.
“You’re arguing that I cannot place a bet on whether the Buffalo Bills win their next game, but I can place a bet on whether or not their lead receiver Stefon Diggs catches the ball 10 times or six times,” Fahey explained.
Responding to the query, New York Assistant Solicitor General Victor Paladino suggested that while there were elements of chance in picking a draft team, players who were skilled and knowledgeable won more often.
“The contestants have available to them a wealth of information, much like the analytics available to the general managers of the world,” Paladino explained.
The plaintiffs have suggested that DFS is undeniably a form of gambling and therefore can only be legalized through amendments.
Acting on behalf of the group, attorney Cornelius Murray said: “I really frankly think what the legislature has done here is bend over backwards to find some kind of way to circumvent that.”
DFS operators have been allowed to continue operating in New York while the appeal is being considered, although no definitive timescale has been set for a ruling in the matter.
However, it is understood a ruling could be made by Q1 2022.