aily fantasy sports companies in existence prior to November 10, 2015 are able to apply for temporary permits while their applications are processed. It is likely that FanDuel and DraftKings obtain said temporary permits within days and should be back in business in New York before the end of August.
Daily fantasy sports fanatics are not the only class of constituents expected to benefit from New York’s adoption of entry fee daily fantasy sports. Governor Cuomo’s office believes that these games should generate approximately $4 million in additional revenues for education aid.
“Daily fantasy sports have proven to be popular in New York, but until now have operated with no supervision and no protections for players,” Cuomo said in a statement. “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.”
The sponsors of the bill in the Senate and the Assembly also offered statements in the governor’s press release.
Senator John Bonacic:
“I am pleased that Governor Cuomo has signed the Daily Fantasy Sports legislation into law, allowing thousands of New Yorkers the opportunity to continue playing these games that they have been playing for over a decade. With strong consumer protections and economic benefits to the state, I believe this legislation can serve as a model for the rest of the country”
Assemblyman Gary Pretlow:
“Fantasy sports are more than online games – they have the potential to generate millions of dollars in revenue for New York State. This bill will allow these companies to continue operating while ensuring fans have a safe environment to play in. I am proud Governor Cuomo has signed this legislation to keep fantasy sports in New York and I thank my partners in the legislature for their work in getting this legislation passed.”
As of now, daily fantasy sports has been declared by various attorneys general to be illegal in nine states, as well as Nevada, where it is illegal unless an operator possesses a state gambling license. New York’s consumer protections includes requiring that daily fantasy sports operators identify highly experienced players and prohibit the participation of minors from engaging in entry fee game play.
FanDuel and DraftKings are not completely off the hook in New York. Attorney General Schneiderman insists that he will still pursue false advertising and consumer fraud claims against the companies
The daily fantasy sports companies could be forced to disgorge prior earnings emanating from New York if Attorney General Schneiderman prevails in his lawsuit.