In November last year, New York Attorney General Eric T. Schneiderman demanded that DraftKings and FanDuel cease and desist taking entry fees in New York. Almost nine months later, the state’s governor has signed a bill into law which allows daily fantasy sports operators to exist in New York as long as they apply for and receive registration with the state’s Gaming’s Commission.
Daily fantasy sports firms in existence prior November 10, 2022 can apply for temporary permits while their applications are processed. It is likely that DraftKings and FanDuel obtain said temporary permits within the next following days and should be back in business in the state before the end of this month.
Daily Fantasy sports fanatics are not only ones expected to benefit form the ruling. Governor Cuomo’s office that daily fantasy sports should generate about $4 million in additional revenues for education aid.
“Daily fantasy sports have proven to be popular in New York, but until now have operated with no supervision and no protections for players,” 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.”
The sponsor of the bill in the Senate and the Assembly also provided statements in the governor’s press release.
“I am pleased that Governor Cuomo has signed the Daily Fantasy Sports legislation into law, allowing thousands of New Yorkers the opportunity to continue playing these games that they have been playing for over a decade. With strong consumer protections and economic benefits to the state, I believe this legislation can serve as a model for the rest of the country,” sad Senator John Bonacic.
Assemblyman Gary Pretlow said: “Fantasy sports are more than online games – they have the potential to generate millions of dollars in revenue for New York State. This bill will allow these companies to continue operating while ensuring fans have a safe environment to play in. I am proud Governor Cuomo has signed this legislation to keep fantasy sports in New York and I thank my partners in the legislature for their work in getting this legislation passed.”
Daily fantasy sports has been declared as of now by various attorneys general not to be legal in nine state as well as Nevada, where it is illegal unless an operator possesses a state gambling licence. New York’s consumer protections includes requiring that operators of daily fantasy sports identify highly experienced players and prohibit participation of minors from engaging in entry fee gameplay.
Despite the ruling, DraftKings and FanDuel are not completely off the hook in the state. Attorney General Schneiderman insists that he will pursue false advertising and consumer fraud claims against the firms.