A challenge from out-of-state wine retailers to New York state’s prohibition on direct sales and delivery of wine to New Yorkers has been rebuffed by the 2nd U.S. Circuit Court of Appeals, which upheld the constitutionality of the state’s laws.

Deciding a closely watched case that drew three intervenors and a number of amici, including The Beer Institute, the federal appeals court said New York’s Alcoholic Beverage Control Law does not violate the commerce clause of the U.S. Constitution because it does not favor in-state sellers at the expense of out-of-state sellers.