As governor Andrew M Cuomo signed the Fantasy Sports Bill, the state of New York became the 8th state in the United States legalizing the online gaming segment Fantasy sports. The bill clears the passage for the two major online gaming companies namely, Fanduel and DraftKings with 13% of their market based in New York. It is also pertinent to note that, the bill was signed just before the opening of the NFL season.
Terming it as a “Game of Skill’ rather then a “Game of Chance” the activity was found to be outside the scope of gambling. Further, it is a form of peoples favorite pastime.
The governor had a week’s period to either confirming the legislation into the Law or vetoing it for good. It can be aptly fitting for the state of New York, as the revenue via taxes would help the state in cutting deficits. The approximate figure of tax revenue stands at $ 4 Million.
“Daily fantasy sports have proven to be popular in New York, but until now have operated with no supervision and no protections for players,” Gov. Cuomo said in a statement. “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.”
For the purpose of gaming an individual requires to create a fictional team with real players and earlier terming it as a “Game of Chance”, Fantasy Sports was deemed illegal under the New York Law. The online activity was stopped since March, 2016 out of a settlement reached and the operations were supposed to be at a halt till the legislation is not passed.
The new mandate requires for a temporary license from the State Gaming Commission with an annual fee of 0.5% or $ 50,000. Further a tax of 15% would be levied on the income made by the online gaming companies. The legislation prohibits minors or individuals under the age of 18 years. Further, there is a ban on inclusion of amateur sports such as college and High school.
The passed legislation also mandates introductory “modus operandi” for new players, identifying them as highly experienced. It also includes protecting of players fund upon deposits.
The cleared law reduces troubles for the major market players such as Draft Kings and Fanduel as the companies were already facing a class action lawsuit for Advertisement fraud and Consumer fraud claims. The state Attorney General Eric Schneiderman confirmed in a statement that, the said Lawsuit would be continued.
The Attorney General further said in the statement: “As I’ve said from the start of my office’s investigation into daily fantasy sports, my job is to enforce the law and protect New Yorkers from illegal or unscrupulous conduct. Today, the governor has signed a bill that amends the law in order to legalize daily fantasy sports contests, with consumer protections for New York players. I will enforce and defend the new law.”
Before the said legislation was passed there were only seven states in the United states to have cleared the Daily Fantasy Sports Legislation bill which includes the state of Massachusetts, Tennessee, Virginia, Mississippi, Colorado, Indiana and Missouri. Further, extensive political and lobbying efforts are already in the process in the state of Illinois and Texas, which covers a huge market for online gaming.
The major fantasy moguls have already partnered with various leagues such as the NFL, NBA, MLB and the product is further endorsed by Dallas Cowboys owner Jerry Jones and New England Patriots owner Robert Kraft giving it a big market presence and a secured goodwill.