New York Gov. Andrew Cuomo late yesterday signed a bill legalizing daily fantasy sports in the state, largely ending a battle with DraftKings and FanDuel that represented a key flashpoint in a nationwide debate on the upstart industry. The state law, arriving nearly seven weeks after legislative approval in June and during a key ramp-up period for fantasy football in advance of the ’16 NFL season, classifies DFS in New York as a game of skill and not one of chance, and imposes a series of fees and regulatory controls. DraftKings and FanDuel had been inactive in the state in March while deliberation on the bill happened and the companies grappled with a lawsuit from state Attorney General Eric Schneiderman. “This legislation strikes the right balance that allows this activity to continue with oversight from state regulators, new consumer protections, and more funding for education,” Cuomo said. The new law allows DraftKings and FanDuel to resume games in one of their largest, most-lucrative and high-profile markets. Specific provisions include a 15% tax on each company's gross revenues, an additional 0.5% licensing fee not exceeding $50,000 annually, required filings of annual reports with the state, a limit of one active account per player and a ban on play by minors. Company execs will additionally be subject to criminal background checks. The operator fees are projected by Cuomo’s office to generate $4M annually for state education funding. It is expected the New York approval will be influential on legislative efforts to legalize DFS elsewhere. New York state Sen. John Nobacic said, "This legislation can serve as a model for the rest of the country." The Fantasy Sports Trade Association similarly called the approval a “beacon to the rest of the nation.”
LEGAL BATTLES REMAIN: DraftKings and FanDuel have been battling with New York state since last November, when Schneiderman issued cease-and-desist orders against each of them. Even with DFS now legal in the state, he still intends to pursue false advertising and consumer fraud claims against the two companies. Both DraftKings and FanDuel said they now intend to ramp New York operations back up quickly as they look to obtain temporary and then full licenses from the state. DraftKings co-founder & CEO Jason Robins said a large outreach to Albany politicians from individual fans in support of DFS legalization “made an incredible difference” toward securing approval from Cuomo and the state legislature.
LOTS OF LOVE: Other coverage of the New York DFS law included: Newsday: "Fantasy Sports Games Legalized In NY After Cuomo Signs Bill;" N.Y. Times: "Win For DraftKings And FanDuel Opens Door For Sports Betting In New York;" Albany Times Union: "NY Legalizes Daily Fantasy Sports;" The Batavian: "Cuomo's Signing Of FanDuel Bill Puts Batavia Downs' Wheels In Motion;" ESPN.com: "FanDuel, DraftKings Get OK Top Operate Again In New York;" FoxSports.com: "Governor Cuomo Signs Law Allowing Daily Fantasy Sports Back In New York;" and Tech Crunch: "New York Governor Signs Daily Fantasy Bill Sports Bill, DraftKings And FanDuel Can Operate Again."
