November 28, 2022

Volume XII, Number 332

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NY Daily Fantasy Sports Case May Not Be Decided Solely on Whether DFS is Skill or Chance

Due to the specifics of New York state law, the outcome of the closely-watched New York state case against daily fantasy sports operators may not come down solely to a question of whether DFS is skill. New York has a two-part test. One part of the test focuses on whether the relevant activity involves skill on the part of the participant. The other part of the test however arguably does not. 

Under New York state law, gambling includes the staking or risking of something of value on the outcome of either (1) “a contest of chance,” or (2) “a future contingent event not under [that person’s] control or influence,” in each case where the person will receive something of value in the event of a certain outcome.

The recent hearing focused extensively on whether the relevant  future contingent event was the outcomes of selected players’ performances in the sporting events themselves or the fantasy sports contest itself.

A very good summary of the oral argument and the parties positions in this issue can be found here.

Copyright © 2022, Sheppard Mullin Richter & Hampton LLP.National Law Review, Volume V, Number 338
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About this Author

James Mattinson Blockchain Technology and Digital Currency Lawyer Sheppard Mullin Washington DC
Partner

Jim Gatto is a partner in the Intellectual Property Practice Group in the firm's Washington, D.C. office. He is also Co-Team Leader of the firm's Digital Media Industry and Social Media and Games Industry Teams, Blockchain Technology and Digital Currency team, and Team Leader of the firm's Open Source Team. 

Areas of Practice

Mr. Gatto leverages his unique combination of nearly 30 years of IP experience, business insights and attention to technology trends to help companies develop IP and other legal...

202.747.1945
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