Source: https://www.nysenate.gov/legislation/bills/2019/s8766
Timestamp: 2020-08-06 22:35:08
Document Index: 656479990

Matched Legal Cases: ['§1412', '§1413', '§225', '§ 1413', '§ 3', '§ 2', '§  1413', '§  3']

Relates to interactive fantasy sports contests; repealer
Jul 29, 2020 print number 8766a
Jul 29, 2020 amend (t) and recommit to rules
Rpld §1412, add §1413, RWB L; amd §225.00, Pen L
Repeals provisions prohibiting the conduct of unregistered interactive fantasy sports contests; provides that interactive fantasy sports contests are not considered a contest of chance constituting a gambling offense under the penal law.
An act to amend the racing, pari-mutual wagering and breeding law and
the penal law, in relation to interactive fantasy sports contests; and
to repeal certain provisions of the racing, pari-mutual wagering and
breeding law relating thereto
To update the provisions of article 14 of the racing, pari-mutuel wager-
ing and breeding law relating to the offering and participation in
interactive fantasy sports contests and ensure the continued opportunity
for New Yorkers to participate in such contests, and to provide for the
severability of statutes pertaining to interactive fantasy sports
repealing section 1412.
adding a new section 1413 providing that if a court of competent juris-
diction in a final ruling declares any portion of Article 14, Interac-
tive Fantasy Sports, to be invalid or unconstitutional, the decision
shall affect only the specific portion so adjudged.
Section 3: Amends section 225.00 of the Penal Law to define interactive
fantasy sports contests and exclude such contests from the definition of
contests of chance and to clarify that interactive fantasy sports
contests are not gambling.
Chapter 237 of the laws of 2016 added a new article 14 to the Racing,
Pari-Mutuel Wagering and Breeding Law which regulated interactive fanta-
sy sports contests. Additionally, chapter 237 of the laws of 2016
expressly exempted interactive fantasy sports contests from Penal Law
provisions prohibiting illegal gambling.
In February 2020, the Appellate Division, Third Department, New York
Supreme Court, issued a ruling in which it held that the Legislature's
2016 amendment of the Racing, Pari-Mutuel Wagering and Breeding Law to
authorize and regulate interactive fantasy sports contests violates the
New York Constitution, article 1, section 9.  The Third Department
further held that the Legislature's contemporaneous amendment of the
Penal Law to expressly allow interactive fantasy sports contests was
also invalid because, the court reasoned, the Legislature intended the
2016 statutory changes to operate holistically and, therefore, individ-
ual sections could not be severed from the rest of the amendments.
This bill will ensure that offering and participating in interactive
fantasy sports contests is not a criminal offense.
This clarification is consistent with the Third Department's observation
in its ruling that decriminalizing interactive fantasy sports wagering
does not violate the New York Constitution, even under the Third Depart-
ment's interpretation of Article 1, section 9.  Further, the proposed
act states the Legislature's intent that should any portion of the 2016
amendments, codified at Article 14 of the Racing, Pari-Mutuel Wagering
and Breeding Law, be deemed invalid or unconstitutional, such ruling
shall not affect the validity of any other provision of Article 14.
AN ACT to amend the racing, pari-mutual wagering and  breeding  law  and
to  repeal  certain provisions of the racing, pari-mutual wagering and
Section 1. Section 1412 of the racing, pari-mutuel wagering and breed-
ing law is REPEALED.
adding a new section 1413 to read as follows:
§ 1413. SEVERABILITY. IF ANY CLAUSE, SENTENCE, PARAGRAPH,  SECTION  OR
DICTION TO BE INVALID AND  AFTER  EXHAUSTION  OF  ALL  FURTHER  JUDICIAL
REVIEW,  THE JUDGMENT SHALL NOT AFFECT, IMPAIR OR INVALIDATE THE REMAIN-
SENTENCE,  PARAGRAPH,  SECTION OR PART OF THIS ARTICLE DIRECTLY INVOLVED
§ 3. Subdivision 1 of section 225.00 of the penal law is  amended  and
two new subdivisions 30 and 31 are added to read as follows:
gaming device in which the outcome depends in a material degree upon  an
element  of  chance,  notwithstanding  that skill of the contestants may
also be a factor therein. AN INTERACTIVE FANTASY SPORTS CONTEST IS NOT A
30. "INTERACTIVE FANTASY SPORTS CONTEST" SHALL MEAN A  GAME  OF  SKILL
WHEREIN  ONE  OR  MORE  CONTESTANTS  COMPETE AGAINST EACH OTHER BY USING
THEIR KNOWLEDGE AND UNDERSTANDING OF ATHLETIC  EVENTS  AND  ATHLETES  TO
SELECT AND MANAGE ROSTERS OF SIMULATED PLAYERS WHOSE PERFORMANCE DIRECT-
LY  CORRESPONDS  WITH  THE  ACTUAL  PERFORMANCE  OF HUMAN COMPETITORS ON
LBD16810-01-0
S. 8766                             2
31. NOTWITHSTANDING ANY DEFINITION TO THE CONTRARY, INTERACTIVE FANTA-
SY SPORTS CONTESTS SHALL NOT CONSTITUTE GAMBLING WITHIN THE  MEANING  OF
to repeal certain provisions of the racing, pari-mutuel wagering and
PariMutuel Wagering and Breeding Law which regulated interactive fantasy
sports contests. Additionally, chapter 237 of the laws of 2016 expressly
exempted interactive fantasy sports contests from Penal Law provisions
prohibiting illegal gambling.
ual sections could not be severed from the rest of the amendments.  This
bill will ensure that offering and participating in interactive fantasy
sports contests is not a criminal offense.
to repeal certain provisions of the racing, pari-mutuel  wagering  and
§ 2. The racing, pari-mutuel wagering and breeding law is  amended  by
§  1413.  SEVERABILITY. IF ANY CLAUSE, SENTENCE, PARAGRAPH, SECTION OR
SENTENCE, PARAGRAPH, SECTION OR PART OF THIS ARTICLE  DIRECTLY  INVOLVED
§  3.  Subdivision 1 of section 225.00 of the penal law is amended and
gaming  device in which the outcome depends in a material degree upon an
element of chance, notwithstanding that skill  of  the  contestants  may
30.  "INTERACTIVE  FANTASY  SPORTS CONTEST" SHALL MEAN A GAME OF SKILL
WHEREIN ONE OR MORE CONTESTANTS COMPETE  AGAINST  EACH  OTHER  BY  USING
THEIR  KNOWLEDGE  AND  UNDERSTANDING  OF ATHLETIC EVENTS AND ATHLETES TO
LY CORRESPONDS WITH THE  ACTUAL  PERFORMANCE  OF  HUMAN  COMPETITORS  ON
LBD16810-02-0
SY  SPORTS  CONTESTS SHALL NOT CONSTITUTE GAMBLING WITHIN THE MEANING OF