New York’s Governor, Mr. Cuomo Andrew signed a bill into law, on August 3, which allows the recommencement of the daily fantasy sports in New York.
This move describes the much liked online contests as a game of skill. That official description resolves the original argument in a lawsuit filed against the two leading fantasy sports companies in the country, FanDuel and DraftKings by the state attorney general. He had compared the online games to illegal operations of gambling that are based on chance.
Mr. Cuomo said that this particular ruling creates the right balance that enables the activity to be carried out with oversight from regulators of the state, increased funding for education and consumer protections that are new. The States Commission for Gaming aimed to post on its site the directives for the games’ operators to acquire registrations, on a temporary basis.
According to the law, they are required to pay annually a fee of as much as $50,000, coupled with a tax of 15% on their total revenue. This particular law additionally prohibits individuals under the age of 18 years from gaming and also disallows high school and college sports.
In playing the games, players are required to assemble a list of athletes in a particular sport, by using the athlete’s real performance data so as to determine the ultimate winner. It is important to note that the players pay for entry fees, and they win decent prizes if they surpass the performances of other contestants in the roster.
In March, Bostons DraftKings together with the New York’s based FanDuel resolved to halt operations in New York until the creation of a law that would see the ambiguity solved. The sites for daily fantasy are facing the danger of being closed, and this is after certain state officials started questioning the payouts and entry fees of the sites. The legal battle results to a question of whether the online competitions rely on luck or skill.
However, under the provision from the Attorney General Schneiderman Eric, they could not start working again, not until Mr. Cuomo had signed the bill into a law. Mr. Eric assured that he would enforce the new law. The lawsuit that was amended will proceed, against FanDuel and DraftKings following false advertising and consumer fraud for pre-operations in New York,’ said Schneiderman.
According to Associated Press, Nigel Eccles, who is the chief executive of FanDuel, said that since January this year, 7 other states including Indiana, Colorado, Mississippi, Virginia also, Massachusetts, Tennessee, and Missouri had created laws that clarify the legality of fantasy sports and setting various regulations for consumer protection. He expressed his gratitude to the lawmakers of New York and the Governor on behalf of the more than 3 million fantasy fans across the state.
On his part, the chief executive of DraftKings, Robins Jason, said that the company of his was happy to have its competitions returning to New York and was also thankful to the hundreds of thousands of supporters from New York for their relentless passion and unrivaled loyalty over the past months.