NY Supreme Court: law allowing fantasy sports websites to operate in the state unconstitutional

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FILE – In this May 2, 2019, file photo, the DraftKings logo is displayed at the sports betting company headquarters in Boston. Sports gambling giant DraftKings won’t give a former “Bachelor” contestant the $1 million prize for winning an online fantasy football contest after she and her husband were accused of cheating.Jade Roper-Tolbert beat more than 100,000 entries to take the top prize, but some in the fantasy sports community were quick to allege she coordinated with her husband, Tanner Tolbert, to submit more than the maximum 150 entries. Roper-Tolbert was no longer listed as the winner Saturday. A DraftKings statement says the company decided to update the standings for several contests and did not elaborate. (AP Photo/Charles Krupa, File)

ALBANY, N.Y. (NEWS10)- A law giving interactive fantasy sports sites the right to operate in the state was declared unconstitutional by a New York Supreme Court Judge Thursday.

While raising legitimate legal questions and important social concerns, they do little more than establish that the Legislature, in finding that IFS contests are not gambling, reached different conclusions, which is a woefully inadequate foundation to meet their burden of establishing beyond a reasonable doubt that Racing, Pari-Mutuel Wagering and Breeding Law article 14 is facially unconstitutional.

STATE OF NEW YORK
SUPREME COURT, APPELLATE DIVISION

Signed by Governor Andrew Cuomo in August 2016, the law required fantasy sports sites to pay an annual fee of $50,000 along with a 15% revenue tax operating under the Gaming Commission, according to a press release.

The law was created after New York’s Attorney General sued FanDuel and Draft Kings for running an illegal gambling operation. The law redefined the sites by calling them ‘games of skill.’

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