ALBANY - Daily fantasy sports offerings from DraftKings, FanDuel and similar companies are in line for a temporary reprieve in New York, according to the state Gaming Commission.
The commission, which regulates the lottery and wagering in the state, filed a notice of appeal Wednesday challenging a state Supreme Court ruling that found part of a law allowing daily fantasy sports contests violates the gambling ban in the state constitution.
The move by the commission appears likely to trigger an automatic stay.
That means companies like FanDuel and DraftKings would be allowed to continue offering their games in New York at least until the appeal is decided — a process that will take several months, at least.
Brad Maione, spokesman for the Gaming Commission, said the commission is entitled to the automatic stay and can resume regulating the industry.
Industry in flux
The daily fantasy sports industry had been in flux in the state since Acting Supreme Court Justice Gerald Connolly issued his ruling in late October.
The October ruling was something of a split decision: While Connolly found part of the 2016 law authorizing the games to be unconstitutional, he declined to overturn another portion of the law that essentially decriminalized fantasy sports contests.
That led to the Gaming Commission temporarily halting regulation of daily fantasy sports, but the companies were able to continue offering their games because they couldn't be penalized by the state.
A stay would allow the state to resume its oversight and remove uncertainty over whether the games can be offered in New York until the appeal is decided.
Cornelius Murray, an attorney for the anti-gambling activists challenging the daily fantasy sports law, said he's uncertain whether a stay will be automatically granted, though he said he understood the state's argument.
Prior to the state's appeal, he asked Connolly to revisit his October decision and fully throw out the daily fantasy sports law, including the parts that decriminalized the games.
Connolly scheduled a Jan. 3 hearing to consider Murray's motion to reargue the case.
In daily fantasy sports, users pay an entry fee to pick a roster of professional athletes, with cash awards provided based on how the rosters perform.
Jon Campbell is a correspondent for the USA TODAY Network's Albany Bureau.