Daily Fantasy Sports Officially Approved in NYPublished August 9, 2016 by Elana K
Governor Andrew Cuomo signed into law a bill that will allow Daily Fantasy Sports companies to operate legally in New York.
Daily Fantasy Sports is officially legal again in New York. The online activity had been banned in the Empire State last year, and the two major operators, DraftKings and FanDuel, were slapped with a multi-charge action suit by NY Attorney General Eric Schneiderman. This June, a bill proposed by Senator John Bonacic to legalize DFS was approved by the senate and just last week was signed into law by Governor Andrew Cuomo. This means that New Yorkers will now be able to enjoy DFS - just in time for NFL season. New York is the eighth state to pass pro-DFS regulations since January.
The Issue with DFS
Daily Fantasy Sports was called under scrutiny last year in a number of states, with many deciding to ban all activity completely until the popular pastime’s definition could be ascertained. Some lawmakers claimed that DFS should fall under the same category as online casino games, which would mean that it needs to be regulated (or not) by individual state laws. Others maintained that as there is a higher degree of skill involved in DFS, so it should have its own laws of regulation, not the same as online gambling. New York was one of many states that chose to define DFS similarly to online casino games, until Senator Bonacic’s bill was approved.
About the Bill
Bonacic’s bill defines DFS as a game of skill, as opposed to online casino games, which are defined as games of luck. DFS operators who wish to offer their services in New York must apply for licenses and pay a 15% revenue tax that will go toward education funding, and an additional .5% of revenue must be paid toward licensing costs.
Both DraftKings and FanDuel will be able to apply for immediate temporary licensing, bt Attorney General Schneiderman will still pursue the lawsuits against the two companies for alleged previous false advertising and consumer fraud.