DFS legalised in New York

08/04/16

Daily fantasy sports (DFS) services will return to New York after Governor Andrew Cuomo signed a bill legalising the sector in the US state.

US.- The law has the support of industry leaders such as DraftKings and FanDuel and was passed by the New York Assembly in June. New York Governor Andrew Cuomo signed into law the bill that legalises DFS in that state. Permitted by the same 2006 federal law that wiped out Internet gambling, the legality of daily fantasy sports has been relegated to various states.

DFS was outlawed in New York last November when Attorney General Eric Schneiderman ruled it to be illegal gambling under state and federal rules. Leading operators began a legal challenge, but eventually agreed to cease trading in New York after a bill sponsored by Senator John Bonacic that sought to regulate their contests proceeded through the legislature.

Andrew Cuomo, New York Governor, said that Daily Fantasy Sports have proven to be popular in New York, but until now have operated with no supervisions 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,” he added.

The leading DFS companies FanDuel and DraftKings identified a small handful of states in which DFS would not be allowed. After the 2015 football season began, several states began to take a hard look at whether daily fantasy should be regulated or eliminated. They both expect to resume offering contests in New York soon by applying for a temporary license, before receiving a formal three-year operating permit. They should be operational well before the start of the NFL American football season in September.

DraftKings Chief Executive Jason Robins said: “We are thrilled Governor Cuomo has signed the fantasy sports bill and we thank him for his support of this important legislation. We are excited to have our DraftKings contests return to New York and bring the fun and excitement of DFS back to our fans.”