New York OK’s Daily Fantasy Sports
The bill, which easily passed the State Assembly but took a lot longer for Senate approval, throws a lifeline to DFS operators who were operating in the state before November 15, 2015.
Under the terms of the new law, those operators are eligible to apply for temporary permits allowing them operate in the state. The operative word in that statement, however, is temporary. According to a report on CalvinAyre.com, there’s now word on exactly how long those permits will be valid.
Also included in the bill are a number of measure designed to protect consumers including a label for more experienced players (i.e. sharks) and standard warning for compulsive gamblers.
For its troubles, New York State will charge a 15% tax on daily fantasy sports revenue.
It’s a major step forward for the beleaguered industry, but their legal troubles related to last fall’s insider trading scandal haven’t gone away entirely. The New York Attorney General’s office is continuing its pursuit of a fraud lawsuit that could still mean big trouble for DraftKings and FanDuel.
Regardless, not every New York lawmaker was happy with the deal, which also deems DFS to be a “game of skill.” One Assemblyman in particular, named Andy Goodell had this to say about daily fantasy sports in New York:
In my mind, it’s clearly gambling. It’s sports gambling.
Goodell is the cousin of NFL Commissioner Roger Goodell, and longtime sports wagering hater, Roger Goodell.
New York Governor Andrew Cuomo is expected to sign the bill into law in the near future.
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