NY fantasy sports hinge on Gov. Cuomo; legal claims remain

He sued them, and called them illegal gambling operations.

The bill passed by the state Senate would regulate and tax the operators of fantasy sports games. It is unclear if he will give his approval but the final legislation included proposed modifications from his staff, suggesting at least some degree of support.

But the Assembly Racing and Wagering Committee chairman Gary Pretlow, who sponsored the bill, told lawmakers the legislature has authority to define what activities are legal in NY as defined by the constitution. Although the NY Legislature voted to regulate and tax their matches, popular daily fantasy sports sites still face uncertainty in New York.

“As I have said from the start of my office’s investigation into daily fantasy sports, my job is to enforce the law”.

In a statement on Saturday, the company said it would resume operations soon with new rules that provide “fairness and transparency at the core” of all its contests, assuming the governor signs the legislation.

The state would impose a 15% tax on each registrant’s gross revenue, as well as an additional 0.5% tax that is not to exceed $50,000 annually.

DraftKings CEO Jason Robins said in a statement after the legislation passed the state Senate that he was hopeful Cuomo would sign the bill into law.

The New York State Assembly overwhelmingly voted in favor to pass the daily fantasy sports bill, ruling that daily fantasy sports is not gambling. “This is a significant victory not only for DraftKings, but for the people of NY and daily fantasy sports enthusiasts throughout the country”.

FanDuel and DraftKings, the two giants of the industry, stopped accepting entries from users within the state earlier this year amid a legal battle with Attorney General Eric Schneiderman, who accused the companies of violating the state’s gambling laws. Some of the racetrack casinos wanted the bill killed unless existing and future casinos in NY were given the licenses to operate the contests. “The company also stated that the bill will, “Solidify New York State as an incubator for this fast-growing piece of the technology industry”, adding that almost 30 fantasy sports companies are based in New York”. It also lets the New York State Gaming Commission audit the fantasy sports companies.

Assemblywoman Deborah Glick responded, “It’s gambling pure and simple”.

“If it walks like a duck and quacks like a duck, we have a duck”, she said.