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New York Appellate Court Muddies the Waters for DFS

In a decision released today by the Supreme Court, Appellate Division (New York’s intermediate appellate court) in White v. Cuomo, the Appellate Division concluded that New York’s daily fantasy sports authorization law is unconstitutional because DFS meets the definition of gambling under New York law.  As a result, according to the Court, a constitutional amendment would be required in order to authorize a form of gambling.  The 4-1 decision will in all likelihood be appealed to New York’s Court of Appeals, and it is likely that the decision will be stayed and have no immediate effect.  The long range consequences for DFS in New York, though, are far less certain.

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