We report the observation of the fractional quantum Hall effect in the lowest Landau level of a two-dimensional electron system (2DES), residing in the diluted magnetic semiconductor Cd1−xMnxTe. The presence of magnetic impurities results in a giant Zeeman splitting leading to an unusual ordering of composite fermion Landau levels. In experiment, this results in an unconventional opening and closing of fractional gaps around the filling factor ν=3/2 as a function of an in-plane magnetic field, i.e., of the Zeeman energy. By including the s-d exchange energy into the composite Landau level spectrum the opening and closing of the gap at filling factor 5/3 can be modeled quantitatively. The widely tunable spin-splitting in a diluted magnetic 2DES provides a means to manipulate fractional states.