DraftKings files appeal in New York Supreme Court
Daily fantasy sports operator compares contest to season long games and horseracing in effort to prove it is a game of skillÂ
Daily fantasy sports (DFS) operator DraftKings has launched its appeal against New York Attorney General Eric Schneiderman, claiming the activity is a game of skill and therefore legal under state law. [private]
In a filing to the New York Supreme Court, DraftKings compared its product to season long fantasy contests, games Schneiderman has previously said are âlegally enjoyedâ by players in the state.
In the 67-page document, DraftKings uses several examples to prove its contests are games of skill, even comparing daily fantasy to horseracing.
DraftKings claims its players are not betting or wagering something of risk â which would meet the definition of illegal gambling under state law â but instead are simply paying entrance fees.
âEntry fees paid to play DraftKingsâ contests do not meet the statutory definition of gambling,â the operator said in its filing.
âDraftKings serves as nothing more than an administrator that collects entry fees, sets contest rules, calculates points, and awards prizes to the winners of DFS contests from its general operating funds.â
In its argument, the operator also referred to horseracing and a previous ruling that allows horse owners to pay to enter races where the prize was predetermined.
Like horse owners, DraftKings argues daily fantasy contestants also pay entry fees to compete for predetermined prizes.
âLike the horse ownersâ selection of horse, trainer, and jockey, contestants exercise significant control or influence over the outcome of DFS contests by carefully selecting their fantasy roster,â the filing said.
âAnd like the horse owners, participants do not have control over what happens in DFS contests after they have made their selections,â it added.
DraftKings is looking to overturn a previous ruling that daily fantasy sports meets the definition of illegal gambling under state law, and efforts by Schneiderman to force them and rival FanDuel out of the state.
Both operators scored a major victory in January when a court ruled they could continue to operate in the state while legal proceedings rumble on.