{"id":189295,"date":"2021-10-18T03:12:45","date_gmt":"2021-10-18T10:12:45","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=189295"},"modified":"2021-10-18T10:11:01","modified_gmt":"2021-10-18T17:11:01","slug":"new-yorks-highest-court-orders-rearguments-in-dfs-case","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/new-yorks-highest-court-orders-rearguments-in-dfs-case\/","title":{"rendered":"New York\u2019s Highest Court Orders Reargument in Daily Fantasy Sports Case"},"content":{"rendered":"

The New York Court of Appeals has ordered reargument in a case that will decide the fate of daily fantasy sports (DFS) in the state. Legal experts say the move could indicate the court is deadlocked on the issue.<\/p>\n

\"New
A billboard advertising a DraftKings DFS promotion in New York City. The surrounding state is the site\u2019s second-biggest market after California. (Image: New York Times)<\/figcaption><\/figure>\n

The court, the state\u2019s highest, will determine whether DFS games are skill or chance, and specifically whether the legislature overstepped its authority when it legalized the contests in 2016.<\/p>\n

The court\u2019s seven-judge panel has been pared down to six after Judge Michael Garcia recused himself from the case. Garcia was part of a 2015 internal advisory board appointed by FanDuel to examine allegations that one of its employees engaged in DFS contests while being party to insider information. His absence creates the possibility of deadlock.<\/p>\n

Albany Law School professor Vincent Bonventre told Law.com that a split three-three vote may well be the reason for the reargument order.<\/p>\n

DFS Carve-out <\/strong><\/h2>\n

Anti-gambling groups sued the state arguing that the 2016 law violates the state constitution. Gambling is illegal in New York unless an exception is made via a constitutional amendment, which requires a public referendum.<\/p>\n

The legislature created a carveout for DFS on the grounds that it is not a gambling game, but a game of skill.<\/p>\n

So far, the trial court has ruled<\/a> that the 2016 law is contrary to the state\u2019s ban on gambling. While it agreed there was skill in selecting a team, it determined that players \u201ccannot control how the athletes on their teams will perform in the real-world sporting events.\u201d<\/p>\n

\n

Confusingly, the trial court also ruled that the legislature was in its power to decriminalize the contests. That\u2019s why sites like DraftKings and FanDuel have been able to continue offering the games pending the resolution of the case.<\/strong><\/p>\n<\/div>\n

After California, New York is DraftKing\u2019s and FanDuel\u2019s second-largest market. The two companies would be forced to cease DFS operations there entirely should the court ultimately rule against in favor of the plaintiffs. New York\u2019s planned introduction of mobile sports betting would soften that blow, however.<\/p>\n

Blessing in Disguise?<\/strong><\/h2>\n

The order for reargument could also prove to be a blessing for DFS sites, especially if they\u2019re rescheduled for next year, after the upcoming retirement of Judge Eugene Fahey<\/a>.<\/p>\n

Fahey was highly skeptical of the state\u2019s oral arguments when they were presented in early October.<\/p>\n

You\u2019re arguing that I cannot place a bet [online] 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 ten times or six times,\u201d asked the judge.<\/p><\/blockquote>\n

\u201cIt\u2019s almost an Orwellian argument,\u201d he continued. \u201cIt\u2019s like saying from 1984,<\/em> \u2018War is peace. Freedom is slavery. Fantasy sports is not gambling. It\u2019s really like the stock market.\u2019 Those things are directly contrary.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

The New York Court of Appeals has ordered reargument in a case that will decide the fate of daily fantasy sports (DFS) in the state. Legal experts say the move could indicate the court is deadlocked on the issue. The court, the state\u2019s highest, will determine whether DFS games are skill or chance, and specifically […]<\/p>\n","protected":false},"author":36,"featured_media":189296,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[14007,60],"tags":[],"acf":[],"yoast_head":"\nNew York\u2019s Highest Court Orders Rearguments in DFS Case<\/title>\n<meta name=\"description\" content=\"New York Daily Fantasy Sports case may be deadlocked in New York Court of Appeals as panel of six judges orders rearguments in case.\" \/>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"New York\u2019s Highest Court Orders Rearguments in DFS Case\" \/>\n<meta property=\"og:description\" content=\"New York Daily Fantasy Sports case may be deadlocked in New York Court of Appeals as panel of six judges orders rearguments in case.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/new-yorks-highest-court-orders-rearguments-in-dfs-case\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2021-10-18T10:12:45+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-10-18T17:11:01+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/10\/new-york.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"792\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Philip Conneller\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@casinoorgphilc\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Philip Conneller\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/new-yorks-highest-court-orders-rearguments-in-dfs-case\/\",\"url\":\"https:\/\/www.casino.org\/news\/new-yorks-highest-court-orders-rearguments-in-dfs-case\/\",\"name\":\"New York\u2019s Highest Court Orders Rearguments in DFS Case\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/new-yorks-highest-court-orders-rearguments-in-dfs-case\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/new-yorks-highest-court-orders-rearguments-in-dfs-case\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/10\/new-york.jpg\",\"datePublished\":\"2021-10-18T10:12:45+00:00\",\"dateModified\":\"2021-10-18T17:11:01+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/58769b72851c8cf117fb58ca150ebf8b\"},\"description\":\"New York Daily Fantasy Sports case may be deadlocked in New York Court of Appeals as panel of six judges orders rearguments in case.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/new-yorks-highest-court-orders-rearguments-in-dfs-case\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/new-yorks-highest-court-orders-rearguments-in-dfs-case\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/new-yorks-highest-court-orders-rearguments-in-dfs-case\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/10\/new-york.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/10\/new-york.jpg\",\"width\":1200,\"height\":792,\"caption\":\"A billboard advertising a DraftKings DFS promotion in New York City. 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