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Daily Fantasy services DraftKings, FanDuel face uncertain future after NY court ruling

Daily fantasy contests – like those offered by FanDuel and DraftKings could be done in New York soon.

An appellate court ruled Thursday that a 2016 law legalizing such games violated a constitutional prohibition on gambling.

“We’re very gratified by the decision,” said attorney Neil Murray, who represents the group that brought the lawsuit. “We think the integrity of the New York state Constitution has been upheld.”



Gov. Andrew Cuomo signed a bill into law in 2016 that cleared the way for companies like DraftKings and FanDuel to operate and be regulated in New York.

“The reason New York state has a constitutional prohibition on commercialized gambling promoted by the state is because it’s a form of consumer financial fraud,” Les Bernal, national director of Stop Predatory Gambling, told MarketWatch on Thursday. “This isn’t about people having a Super Bowl office pool. This is about state government cheating and exploiting people, contributing to the huge debt culture in the state.”

Meanwhile, DraftKings says the decision to allow these games in New York was the best decision for taxpayers and fantasy sports fans.



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