ALBANY, N.Y. -- For three hours on Tuesday, attorneys for fantasy sports websites DraftKings and FanDuel insisted to lawmakers in the state Assembly the businesses were games of skill, not luck.
"Success at these games is determined by how skillfully assembles their team. This unique organization, selection and assembly, not the performance of any one athlete, not the performance of any one team, dictates how many fantasy sports a fantasy player amasses," said Jonathan Schiller, DraftKings attorney.
The distinction is key for the future of how daily fantasy sports will be played in New York. Attorney General Eric Schneiderman has filed a legal challenge to both DraftKings and FanDuel arguing they provide games of chance, or gambling, which is illegal under the state's Constitution.
"I think that if we concentrate on regulation rather than elimination, I think that everyone can come away pretty happy," said Assemblyman Dean Murray, R-Suffolk County.
Schneiderman's pursuit of fantasy sports has angered fans, but also shined a light on the growing online activity.
"Fantasy sports games are not about a contingent future event. They're not about the outcomes of one event, they're not about the outcome of several events. They're about the fantasy team you put together as the general manager or owner of your team," said Randy Mastro, FanDuel attorney.
The Assembly's hearing drew twice as many state lawmakers as a recent hearing on prison oversight. Assembly Racing and Wagering Chairman Gary Pretlow says lawmakers will move to legalize fantasy sports should a court outlaw their activities.
"If the courts rule that it is an illegal act, then we will go in one direction, we will probably legalize it because people are doing it," said Pretlow, D-Mount Vernon.
Even if fantasy sports are deemed legal, state lawmakers still expect to act on the issue.
"If the courts rule it is a legal act, we will still probably do something. There will be regulation in either case," Pretlow.
Regulating daily fantasy sports is shaping up to be one of the more hot-button issues facing state lawmakers when they start the 2016 session next month.
The Attorney General's Office had no comment on the hearing.