New York Gaming Commission Not to Oversee DFS Any More

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New York has seen a mild overhaul of the status of daily fantasy sports, allowing the state’s monitoring bodies to drop the supervision of the segment and pass the baton onto the next in line. Here’s what happened.

New York and the Relation with Daily Fantasy Sports

Daily Fantasy Sports (DFS) is no longer in the remit of the New York regulators, or so it seems. A ruling issued by a Supreme Court justice established that the state’s legislators cannot influence the development of the segment to the point they have been doing so far, especially using the argument that DFS is a form of “gambling.”

According to the ruling, it had been established as early as 2016, that DFS is a “game of skill,” and while the legal status of the activity has been somewhat of a grey area, nobody actually had gone so far as to ban it.

Following the ruling, the New York Gaming Commission has stripped its website of any mentions or provisos targeting the segment, as reported by a local media. The Commission’s spokesperson, Brad Maione, also held a brief press conference announcing that the regulatory body will no longer be engaged with regulating the segment.

As a result, operators will be able to continue and push ahead with offering odds and accepting bets on sports wagers across the entire state in alignment with the decriminalization decision from 2016. The good news is that operators will no longer be coming under legal scrutiny for simply running the activities in a fair and open way.

Going Back in Full Swing

While operators are quite happy with being allowed to run their businesses unperturbed, they are aware of the need of oversight. FanDuel has stated that it will be happy to see regulatory bodies establish control and screen & audit how DFS operators run.

In fact, FanDuel said that it would seek to cooperate with any efforts for establishing supervision designed to guarantee the safety of gamers and participants. While, FanDuel and many others have been assuming a good tone with legislators and the state, others have been disgruntled.

Attorney Cornelius Murray, one of the main opponents of Daily Fantasy Sports in the state, has said that he will be going back to court and challenge the ruling. Mr. Murray doesn’t mean to just challenge whether the state’s commission can oversee the segment.

He’s determined to attack the decriminalization law head-on and eventually see it crumble. Whether he has the legal basis to demand such action is another matter altogether.

FanDuel and DraftKings seem to have been left in a state of legal limbo – they can run their business but just as they used to in pre-2016 terms – as a grey area. Meanwhile, there have been some vociferous opinions about the unfairness of having some operators apply for a temporary permit and get away with it whereas others have to go through the whole process from scratch.

There are definitely loose ends that need to be ironed out if DraftKings and FanDuel want to avoid future calamity. They may need to kickstart things themselves and pave the legal framework that regulates them.

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