ALBANY - More than three weeks after a court determined that companies like FanDuel and DraftKings were violating the state Constitution, they're continuing to operate in New York without immediate fear of repercussion from state regulators.

The state Gaming Commission was hobbled by an Oct. 26 ruling that struck down a two-year-old state law green lighting interactive fantasy sports, which allows customers to wager on the performance of professional athletes.

Baruch College law professor Marc Edelman interpreted the ruling to mean that interactive fantasy sports can continue in New York without an obligation for providers to comply with any state rules, including having a license.

The Legislature approved a regulatory structure in 2016, when there were no state laws governing the contests and a rush of companies trying to access the state's pool of customers. The unregulated market was targeted by then-Attorney General Eric Schneiderman in 2015, and a legal battle was averted with the passage of the new law.

In the recent ruling, acting state Supreme Court Justice Gerard Connolly found that the online hobby violated the strict prohibition on gambling in New York's Constitution because the contests involve a significant element of chance. And while the judge determined the state Legislature was well within its rights to decriminalize the industry, he found it didn't have the authority to grant the Gaming Commission oversight.

"We're in a little bit of a foggy, hazy, legal no-man's land," said Cornelius Murray, the attorney who brought the challenge to the law.

If the state files a notice of appeal, which Murray expects, the ruling would be stayed pending the resolution of the appeal. Gaming Commission spokesman Brad Maione said they are consulting with the state attorney general's office on whether to challenge the ruling.

Until a notice is filed, though, Maione acknowledge the commission "no longer has a role in regulating" interactive fantasy sports and isn't involved in collecting tax revenues.

Interactive fantasy sports companies generated about $4.9 million in state tax revenue in 2017, according to a state report. If the state is unable to collect the revenues, New York would be missing out on about $93,560 a week based on last year's report.

One sign that the commission is taking a hands-off approach came immediately after the ruling when references to interactive fantasy sports were stripped from their website. Maione confirmed that the ruling "required a modification of the website."

Despite the pending legal questions, FanDuel and DraftKings, the two biggest players in the industry, aren't hitting pause on their operations.

In a statement, DraftKings outside counsel David Boies maintained that the court's ruling found their product isn't gambling under state law, but he didn't address its constitutionality.

"We are continuing to study the court's decision invalidating the regulatory structure and are committed to working with the Legislature," he said.

FanDuel added that the company believes in the "benefits of regulation and will cooperate with efforts to permanently restore regulatory oversight."

Even before the court ruling the state's regulatory approach was still a work in progress. the Gaming Commission was operating on temporary permits granted to companies that entered before the state law was adopted. Edelman said the ruling allows new companies to enter the market and ends the shared monopoly that the limited number of operators in the state previously enjoyed.

The soonest the state Constitution could be amended to comply with the judge's decision is 2021.

David.Lombardo@timesunion.com - 518.454.5427 - @poozer87