NY Legalizes Fantasy Sports With an Eye on Tax Revenue
Grab your wallets, New Yorkers: Fantasy sports are now officially legal in the state.
New York Governor Andrew Cuomo this week signed legislation to legalize and regulate the contests, classifying them as "games of skill" rather than illegal gambling.
The move comes after New York Attorney General Eric Schneiderman last year cracked down on the popular fantasy sports firms DraftKings and FanDuel, which he said run afoul of state gambling regulations.
Under the bill Cuomo signed this week, fantasy sports companies will need to register with the state Gaming Commission. Tax revenue from the games will fund state education aid. The state expects to generate $4 million a year in tax revenue through the games.
"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 legislation also incorporates consumer protections, including requirements that players be at least 18 years old and that sites warn users when they're about to take on "highly experienced players," aka sharks.
In a Wednesday statement, Schneiderman said he will enforce the new law but continue to move forward with false advertising and consumer fraud claims against DraftKings and FanDuel.
"My job is to enforce the law and protect New Yorkers from illegal or unscrupulous conduct," he said. "The Governor has signed a bill that amends the law in order to legalize daily fantasy sports contests... I will enforce and defend the new law."
This article originally appeared on PCMag.com.