Gov. Andrew Cuomo Declares DFS Legal In New York
The legal battle over the legality of Daily Fantasy Sport in New York has finally been settled as Gov. Andrew Cuomo has signed legislation that declares DFS as games of skill and not games of chance that would have made them illegal.
This is a major win for the DraftKings and FanDuel who were under sustained attack from Attorney General Eric Schneiderman who last year went on a rampage to halt DFS activity in New York. They were forced to shut down operations in one of their strongest markets in a deal with Schneiderman until the legal status was cleared up.
Gov. Cuomo explained the decision to legalize DFS and said,” Daily fantasy sports have proven to be popular in New York, but until now have operated with no supervision and no protections for players. 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.”
Other legislators were equally delighted at the legalization. Assemblyman Gary Pretlow who sponsored the legislation in the Assembly summed up what many think to be true, “The state wins, the consumer wins, the operators win. The significance is that 3.5 million New Yorkers that have been enjoying fantasy sports can continue, and the operators can also know they are now operating within the law, and consumers are being protected as they weren’t before.”
In terms of the new legislation that will be enforced by the New York State Gaming omission, FanDuel and DraftKings will have to pay $50k to operate as well as 15 percent tax on all revenues.
AG Schneiderman said in a statement that his office would enforce all the amendments of the new law and still hope to pursue the customer fraud charges laid against DraftKings and FanDuel. DraftKings CEO Jason Robin was “thrilled” at the decision. FanDuel CEO Nigel Eccles was equally delighted and said “ FanDuel’s future is bright.”