New York DFS bill may be challenged

The new law that allows daily fantasy sports (DFS) in New York state may face a legal challenge from a national anti-gambling group.

The sector was banned in New York by state Attorney General Eric Schneiderman last year, but the prohibition ended earlier this month when Governor Andrew Cuomo signed a law to legalise contests, set taxes and create a new licensed regime.

However, while the law has already been passed and operators such as DraftKings and FanDuel have applied for licences, opponents of the sector have suggested they may launch a legal challenge.

Les Bernal, the national director of Stop Predatory Gambling, told the Buffalo News newspaper that his group is considering how it can overturn the law.

“We believe in improving the lives of New Yorkers, and part of that mission is to repeal the state’s predatory gambling policies, and litigation is part of that effort,” Bernal said.

“We are definitely advanced in this process, but we’re not in a position to say when it will be filed. But anyone investing in these businesses should really keep their hands in their pockets for the near future.

“There is no single act of New York State government that creates more inequality of opportunity than its sponsorship of predatory gambling.

“Now what state government is trying to do is force predatory gambling into every home and smart phone in the state as a result of a push by very powerful gambling interests.”

According to the Buffalo News, gaming legal expert Daniel Wallach said that the statutory change that redefined DFS contests as ‘games of skill’ would not stand up to a legal challenge, and that a constitutional amendment was required.

“I think it’s all going to rise and fall if there’s a challenge under the state constitution,” said Wallach, a gaming and sports law attorney at Becker & Poliakoff.

Related article: DFS legalised in New York