Back in Town..DFS giants return to New York

newyorkDaily fantasy sports (DFS) has returned New York, as the state Gaming Commission this week granted five temporary permits.

Under the permits, leading US fantasy sports operators FanDuel and DraftKings will be allowed to resume New York operations immediately ahead of the start of the 2016/17 NFL season (September 8) a key period for the DFS industry.

“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,” said New York  Commission Executive Director Robert Williams.

Since November 2015, both FanDuel and DraftKings governances have been fighting expensive legal battles against New York legislators, who had served the companies with a ‘cease & desist’ orders, demanding that the operators withdraw their DFS services from targeting state consumers.

Last July, New York DFS stakeholders finally made headway as Governor Andrew Cuomo passed Bill-S8153 relating to provisions for regulated daily fantasy sports (DFS) services for the state of New York.

US business news sources report that New York regulators allowed for the issuing of temporary permits, in order for DFS operators to renter the market and allowing a grace period for officials to craft permanent regulations which will see state DFS taxes at a 15% gross gaming revenue rate.

New York represents a major market for both FanDuel and DraftKings operations, at the time of their suspension it was reported that both operators had a combined state player pool of 1.1 million active players representing approximately 13% of their total customer base. 

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