DFS allowed to resume activity in New York

The decision arrived just in time for the approaching NFL season and Major League Baseball playoffs.

US.- FanDuel, DraftKings and three other Daily Fantasy Sports operators were cleared to resume operations in the big apple state. New York’s Gaming Commission granted temporary permits to these five companies following passage of a state law that attempted to resolve a legal conflict over whether they should be considered illegal gambling or a game of skill.

The decision goes back to a January lawsuit from New York Attorney General Eric Schneiderman against DraftKings and FanDuel, which wanted to shut down the daily fantasy websites under the grounds that they hosted gambling and were operating illegally under New York law. Earlier this month, Governor Andrew Cuomo signed a bill formally legalising and regulating paid-entry fantasy sports bill in the state.

Jason Robins, DraftKings CEO, said: “We are proud to be a leading sports-tech and entertainment company that delivers an unparalleled fantasy sports experience, with state of the art technology and a mission to bring fans closer to the sports they love than they ever thought possible. New Yorkers can play our games right now, and on behalf of everyone at our company, thank you New York and welcome back to DraftKings.”

Permits were also issued to three other operators: Yahoo, FantasyDraft and Draft. The Commission will continue to review permit application materials from additional operators in New York state.

The New York bill imposes a 15.5 percent tax on gross revenue for DFS site operators, FBI background checks for directors of DFS companies and oversight from the New York State Gaming Commission on the contests.

Commission Executive Director Robert Williams said: “These temporary permits get companies up and running in New York state while assuring resident players that safeguards are in place.”