Daily Fantasy Sports Legalized in the State of New York

Andrew Cuomo

Andrew CuomoWhile players will still be waiting some time to enjoy online casino games in New York, daily fantasy sports has been legalized. Governor Andrew Cuomo has signed legislation into law regulating the industry within the state.

Daily fantasy sports has been a hot topic of debate over the last year. The activity was enjoyed for years until the Attorney Generals of the United States started to deem the DFS contests illegal. Operators such as FanDuel and DraftKings were shut down, having to stop offering services in such states as New York. While states were shutting down such activity, they also began to look at the industry and create legislation to regulate gaming options. New York was one of the first to shut down gaming but has now recently passed legislation, legalized DFS within the state.

Starting from the Beginning

Late last year, New York Attorney General Eric Schneiderman, ruled that daily fantasy sports contests were considered illegal gambling under state laws. By March of this year, Schneiderman had already brought a case against operators FanDuel and DraftKings and come to a settlement to see the operators stop their DFS offerings. The sites were listed in a lawsuit and faced several charges for breaking violations such as fraudulent marketing and illegal gambling. Most have been dropped but Schneiderman still has a suit in place.

Since DFS legislation has been passed in the state, the AG has stated that it is his office’ job to enforce the law and protect citizens from the state from unscrupulous conduct or illegal conduct. The law has been signed and the AG plans on enforcing and defend the law. However, he will continue to push for the case to move forward against FanDuel and DraftKings based on the misconduct in the past including consumer fraud and false advertising.

The New DFS Law

Bill S.813/A.10736 passed back in the middle of June, which actually happened to be the last day of the current legislative session. The votes were not unanimous but were heavily in favor of the measure, with a vote of 91 to 22 within the Assembly. In the Senate, the vote was also positive at 45-17. The bill was sent to Cuomo’s desk and signed into law relatively quickly. The Governor had the option to veto or sign. If nothing was done, the bill would have automatically became law.

According to the information listed in the new law, operators of daily fantasy sports will be given licensing to accept players from the state of New York. Temporary licensing will be granted to get sites going before the full licensing process.

Operators are Happy with Developments

Since the passage of the measure in the state of New York, daily fantasy sports operators are happy with the outcome. Both FanDuel and DraftKings have penned statements on the matte, both happy to see legislation put in place so they can once again offer services to New York residents. Jason Robbins, the CEO Of DraftKings, stated that the company would like to thank the hundreds of thousands of supporters in New York for their loyalty and passion during the last several months.

Robbins pointed out that the hard work of players made an incredible difference and thanks those involved in legislature for getting the measure signed into law, particularly Assemblyman Gary Pretlow and Senator John Bonacic. Nigel Eccles, the CEO Of FanDuel, also commented on the law being signed by stating that they sincerely thank Governor Cuomo and state legislature members for bringing daily fantasy sports back to the state.

Now, any operator of DFS gaming in the state will have to abide by rules set forth within the new law. Taxes, fees, etc. have all been laid out as well as the path for licensing to get the industry started off on the right track with consumer protections in place.