Gov. Andrew Cuomo signed a bill on Wednesday, allowing the resumption of daily fantasy sports in New York. It did so by referring to the online contests a “game of skill,” which was a legal sticking point for the State Attorney General’s office, which had classified fantasy sports websites such as FanDuel and DraftKings as “games of chance.”
FanDuel and DraftKings had agreed to stop operations in New York in March, but pressured state lawmakers to reclassify the sites as skill-based. That pressure paid off.
The bill that Cuomo signed on Wednesday — S.8153/A.10736 — requires fantasy sports companies to register with, and operate under regulations issued by, the New York State Gaming Commission and pay state taxes, which are expected to bring in $4 million annually for the state.
Cuomo said the bill “strikes the right balance that allows this activity to continue with oversight from state regulators, new consumer protections, and more funding for education.”
A.G. Eric Schneiderman released a statement on Wednesday upon the bill’s signing, explaining that he had been enforcing the law as he interpreted it. His statement follows:
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. Today, the Governor has 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.”
