Fantasy Sports Making a Comeback in New YorkPublished August 26, 2016 by Ivan P
Fantasy sports are back in New York, this time for good. The state issued temporary operating licenses to five different companies including market leaders DraftKings and FanDuel.
The wait is now over. Fantasy sports are coming back to New York through the wide gates as the recently enacted law allows for licensed operators to offer their services within the state. Five companies, including the market leaders DraftKings and FanDuel, have been issued temporary licenses by the New York State Gaming Commission.
Brief History of Fantasy Sports in NY
Since they have been first introduced in New York, daily fantasy sports garnered huge popularity with the audience. Two leading companies, Boston's FanDuel and New York's DraftKings, were growing rapidly, attracting more and more players with each day.
It all came to a crushing halt in late 2015 when the New York's Attorney General Eric Schneiderman went after fantasy sports, claiming they were essentially another form of gambling. All forms of online gambling are illegal in New York.
Although initially intent to fight the persecution, sites eventually gave in and left the market, with the stipulation they would be allowed to return once the legislation was passed.
New Law Creates Regulated Market
The bill to regulate daily fantasy sports in New York passed all the necessary procedures and finally arrived to the desk of Governor Andrew Cuomo earlier this month (August). Cuomo wasted no time signing the bill, turning it into a full-fledged law.
The bill defines fantasy sports as a "game of skill," which makes all the difference in the world in terms of regulation. While finer details are still being ironed out, the law will ensure proper taxation and much needed customer protection which was non-existent in the unregulated environment.
Five companies were given temporary licenses so they can set up the shop while waiting for further instructions.
State officials in the know believe that the industry has a potential to generate $4 million income on a yearly basis. This money can be used to fund other important projects from the areas of health, education, etc.