New York DFS legislation hit with legal challenge

Suit bought by New York citizens and anti-gambling group but operators are unconcerned

A group of New York citizens, supported by the public interest group Stop Predatory Gambling, have filed suit against New York Governor Andrew Cuomo and the state’s Gaming Commission based on their support for DFS legislation.

The state legislature and Cuomo enacted a law to regulate DFS this summer, but the plaintiffs argue that a constitutional amendment is need to allow what it terms as gambling in the state.

The original legislation describes DFS as a game of skill.

Attorney Neil Murray of the firm O’Connell and Aronowitz, who filed the litigation, explained: “The plaintiffs seek to protect the public from predatory gambling consistent with the Constitution.

“They also intend to stop FanDuel, DraftKings and other internet gambling operators from exploiting the financially desperate and the addicted in New York.

However FanDuel and DraftKings have dismissed the threat of the legal action, asserting: “They have no case”.

A spokesman for the two firms added: “The state constitution specifically gives the legislature the power to define what is – and what is not – gambling, and the legislature has done so a number of times in the past and long before the emergence of fantasy sports. The Attorney General, who certainly has had some strong opinions about fantasy sports, has clearly stated he will enforce and defend this new law. This is a layup – they have no case.”

Ironically the state AG Eric Schneiderman will be tasked with defending the bill by claiming the state can decide what is gambling and that it has ruled DFS to be a game of skill. This comes just months after he forced DFS operators to leave the state because they offered gambling services. He has since promised he will defend the bill in court.