Gov. Andrew Cuomo’s decision to legalize interactive fantasy sports in New York State couldn’t have come at a better time for Western Regional Off-Track Corp., which recently signed a four-year deal with FanDuel to offer fantasy sports competition at Batavia Downs Gaming and at some of its OTB branches.
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The law, supported by the industry and passed by the New York Assembly in June, establishes consumer protections, formal regulation, and a tax on the games that Cuomo expects will generate $4 million for New York’s education system.
Daily Fantasy Sports have been a big thing in the state of NY.
“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”, Cuomo said.
Only companies that had been offering contests in NY prior to November 10, 2015 – such as DraftKings, FanDuel and Yahoo! – will be eligible for a temporary permit.
The law takes effect immediately. But opponents argue that the games are illegal because they depend on factors outside of players’ control.
A trade group backed by DraftKings and FanDuel led a lobbying push at the state Capitol earlier this year, urging state lawmakers to approve the bill. “Likewise, employees of other fantasy sports sites aren’t allowed on FanDuel”.
But under the stipulation with Schneiderman, they couldn’t start operating again until Cuomo signed the bill into law. Had it not acted, they would have been able to restart their appeals during the state appellate court’s September term.
Companies must also provide introductory overviews for new players and reveal highly-experienced players. That company was not part of any legal actions.
This decision had a major impact on FanDuel and Draft Kings, two main DFS operators in NY as they were forced to leave. Kennedy pointed out that no one should have to sit back and watch individuals in other states in the U.S. compete and play an activity like DFS and not be able to do so in NY. I will enforce and defend the new law. We would like to thank our hundreds of thousands of NY supporters for their passion and loyalty over the past several months.
“Last fall, amidst national controversy, some pundits put fantasy sports on death watch”, Eccles said, noting that seven other states have legalized the games since January.
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FanDuel also indicated that the United Kingdom launch is the “first step in global expansion plans”.
