New York goes all in on fantasy sports
Steve’s breakdown: Considering all the hanky-panky that went on with FanDuel and DraftKings, I bet there will be additional players in the mix. Check into these guys:
– DraftPot: Play without a salary cap. Draft anyone you want. I like DraftPot.
– StarsDraft *formerly Victiv: Now owned by the same company that owns PokerStars.
NEW YORK STATE: Gov. Cuomo legalized fantasy sports in the state on Wednesday, signing a bill that will allow betting to resume after months of battles between state officials and the companies that host the competitions.
It doesn’t, however, mean the end of Attorney General Eric Schneiderman’s fight against the biggest players in the industry.
“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,” Schneiderman said. “I will enforce and defend the new law. Our false advertising and consumer fraud claims for past misconduct by Draft Kings and Fan Duel will continue to move forward.”
The new bill does settle the argument about whether the games constituted illegal gambling, one of the Schneiderman’s key claims in a lawsuit.
The activities are now defined as games of chance.
The law requires fantasy sports companies to pay an annual fee of up to $50,000 with a 15 percent tax on their revenue.
It also bars anyone younger than 18 from playing and prohibits college and high school sports.
The tax is expected to bring in $4 million a year for education.
Companies must also provide introductory overviews for new players and reveal highly-experienced players.
“This bill will allow these companies to continue operating while ensuring fans have a safe environment to play in,” said Assemblyman Gary Pretlow (D-Mount Vernon) who sponsored the legislation.
In March, New York-based FanDuel and Boston-based DraftKings agreed to stop operations in New York pending the passage of a law that would resolve the ambiguity.
But under the stipulation with Schneiderman, they couldn’t start operating again until Cuomo signed the bill into law.
The law takes effect immediately.
But companies operating in the state before November can resume at once, but are required to register.
New companies need to get approvals and must register before starting operations.