Lawsuit against DFS in New York to continue

A judge denied a motion to dismiss a legal challenge to the existing fantasy sports laws in New York.

US.- Albany County trial judge, Gerald Connolly, has denied New York’s motion to dismiss a motion that challenged the legality of daily fantasy sports in the state. The Court said that the State’s arguments are more suitable for a post-answer motion for summary judgement instead of a pre-answer motion to dismiss the case.

As New York Appeals reported, the ruling was unsurprising, as this is simply a way to let the case proceed. Judge Connolly said in the ruling: “While defendants argue that the legislation is presumed to be constitutional, such presumption alone does not itself bar plaintiffs’ action herein and while plaintiffs ultimately bear the burden of proof in this action, the Court’s analysis upon the instant motion is limited. Plaintiffs complaint challenges the constitutionality of Chapter 237 of the Laws of 201 6. Accepting the facts alleged as true, plaintiffs have alleged that daily fantasy sports constitutes “gambling” and that such activities violate Article I, Section 9 of the Constitution.”

“Defendants assert that the courts have accorded the Legislature substantial latitude in determining what conduct constitutes prohibited gambling, however, such assertion does not mandate dismissal of plaintiffs’ complaint at this juncture … such argument is more appropriate on a motion for summary judgment and not the instant motion to dismiss for failure to state a cause of action,” he continued. The case is expected to present more fillings and eventually a decision from a judge.

DFS was outlawed in New York last November when Attorney General Eric Schneiderman ruled it to be illegal gambling under state and federal rules. Leading operators began a legal challenge, but eventually agreed to cease trading in New York after a bill sponsored by Senator John Bonacic that sought to regulate their contests proceeded through the legislature. However, New York Governor Andrew Cuomo signed into law the bill that legalises DFS in that state almost a year ago, as he said that the modality was already popular in New York but needed supervision and protection for players.