The New York State Gaming Commission on Aug. 22 issued temporary permits to interactive fantasy-sports operators DraftKings, FanDuel, Yahoo, FantasyDraft, and Draft. The permits allowed the companies to “immediately” resume operations in New York, the state Gaming Commission said in a news release issued that same day. The Commission has completed a “legally required, thorough” […]
The New York State Gaming Commission on Aug. 22 issued temporary permits to interactive fantasy-sports operators DraftKings, FanDuel, Yahoo, FantasyDraft, and Draft.
The permits allowed the companies to “immediately” resume operations in New York, the state Gaming Commission said in a news release issued that same day.
The Commission has completed a “legally required, thorough” review of the temporary-permit applications from the five companies, ensuring “required” consumer protections, player safeguards, and advertising restrictions.
“As the newly enacted law requires, the Commission regulates all aspects of interactive fantasy sports, including ensuring the operators put important consumer protections in place,” Robert Williams, the Commission’s executive director, said in the release. “While the Commission continues work on formal regulations for these games, these temporary permits get companies up and running in New York State while assuring resident players that safeguards are in place.”
New York City–based FanDuel, Inc. reacted in a statement posted Aug. 22 on the FanDuel website
“We are very excited to announce that the New York Gaming Commission has approved FanDuel’s temporary operating license in New York, allowing us to offer our paid contests in our home state. We want to thank Governor Cuomo and the New York legislature for bringing back our contests to millions of sports fans … Lastly, we want to thank our users who supported us throughout and continue to tell their legislators across the country that this issue is important to them.”
In an Aug. 22 posting on its Facebook page, Jason Robins, CEO of Boston, Massachusetts–based DraftKings, said the company is “thrilled to be able to bring DraftKings back to millions of New York sports fans.”
“We thank the New York State Gaming Commission for being thorough and expedient in approving the return of fantasy sports to New York… 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,” said Robins.
The state Gaming Commission’s action came nearly three weeks after Gov. Andrew Cuomo signed the legislation that made online, daily fantasy sports games legal and regulated in the Empire State.
Cuomo on Aug. 3 signed the bill that requires fantasy-sports companies to register with and operate under the regulations of the New York State Gaming Commission, Cuomo’s office said.
New York expects the new law will generate about $4 million in tax revenue to fund state-education aid once it is fully implemented.
“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 release. “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 consumer protections imbedded in the legislation include offering introductory procedures to new players, identifying highly experienced players, prohibiting the participation of minors, and protecting players’ funds upon deposit, according to Cuomo’s office.
Schneiderman’s legal action
Even though fantasy sports are now legal in the state, New York Attorney General Eric Schneiderman plans to continue his legal action against the popular DraftKings and FanDuel websites.
“As I’ve said from the start of my office’s investigation into daily fantasy sports, my job is to enforce the law and protect New Yorkers from illegal or unscrupulous conduct. [On Aug. 3], the governor … signed a bill that amends the law in order to legalize daily fantasy sports contests, with consumer protections for New York players. 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,” Scheiderman said in a statement his office issued that day.
His office on Nov. 11 of last year had ordered both companies to stop accepting bets inside New York.
Contact Reinhardt at ereinhardt@cnybj.com