The New York appeals court declared a ruling on Thursday that the daily fantasy sports is considered illegal. Also, the verdict overrides the 2016 law, which was deemed to be unconstitutional.
Governor Andrew Cuomo signed a bill into law in 2016 that did not class the activity like gambling. However, it has its guidelines and regulations regarding consumer protection.
What are Daily Fantasy Sports?
Daily Fantasy Sports are a form of internet gambling and a subset of fantasy sport. Wherein players will be able to create a list of virtual teams from the pool of real players. Then, these teams will compete based on their statistical performance of the players in the actual games.
According to sports chat, the activity is over short-term periods compared to a season-game play. Also, these were structured in the form of a paid contest. Furthermore, winners receive a share of pre-determined pot funded by their entry fee.
Supporters have defended daily fantasy sports as being a game of skill. It requires strong familiarity with the players and teams. Thus, understanding the sports’ betting odds is critical to be able to be a successful bettor.
Why are Daily Fantasy Sports Considered Illegal?
The daily fantasy sports law was challenged by several residents in a court of law. And, the group called Stop Predatory Gambling filed for a lawsuit. Also, four of the plaintiffs said that they suffered personal or family harm from gambling debts.
The Stop Predatory Gambling group is concerned about gambling-related justice. They are very critical of how gambling laws were handled in the state. To which their primary concern is the daily fantasy sports law.
Besides, the group believes that commercialized gambling is a form of consumer financial fraud, in which New York state has a constitutional prohibition. As such, the state failed terribly in this regard by exempting the law, and it cheated and exploited people.
Based on online gambling South Korea, the ruling cast uncertainty on the future of sports betting in the state. With this, daily fantasy sports considered illegal.
FanDuel, one of the daily fantasy sports operators, believes that people should not worry just yet. They expect that there will be an appeal so they can continue to offer contests while that appeal is decided.