DFS Exemption Lands Cuomo in Court

An anti-gambling group in New York says Governor Andrew Cuomo (l.) and state regulators acted unconstitutionally in approving legislation exempting real money fantasy sports from the state’s gambling law. They say the exemption is unconstitutional and they want it overturned.

An anti-gambling group is suing New York Gov. Andrew Cuomo and the state Gaming Commission over a new state law exempting real money fantasy sports contests from New York’s gambling statute.

Stop Predatory Gambling filed the action in Albany together with lawyers for four state residents the group says were harmed by gambling addiction.

The exemption, timed to coincide with the start of the National Football League season, was approved by the Legislature after FanDuel, DraftKings and other daily fantasy sports operators were shut down by state Attorney General Eric Schneiderman, who considers the activity to be illegal gambling. Fantasy proponents argue the contests are not gambling but games of skill.

The suit wants the exemption overturned, claiming it violates the state Constitution. “Daily fantasy sports gambling is a huge rip-off for all citizens, regardless whether you gamble or not,” Stop Predatory Gambling said.

A spokesman for lobbyists representing FanDuel and DraftKings said lawmakers followed the proper steps in legalizing the games.

“The attorney general, who certainly has had some strong opinions about fantasy sports, has clearly stated he will enforce and defend this new law,” he said. “They have no case.”