Following a week of regulatory hearings, the New York legislature has agreed to pass the bill-S8153 relating to provisions for regulated daily fantasy sports (DFS) services for the state of New York.
S8153’s now awaits its final signature by Governor Andrew Cuomo in order to be processed into state law, US news sources report that the bill was widely supported by the state Assembly who voted 91-22 in favour of the bills progress.
Once S8153 is formally presented to Cuomo, the New York Governor will have 10 days to decide on the bills motion (whether to pass or veto). No action from Cuomo would see S8153 automatically passed into law as the bill has gained overwhelming support by the Assembly.
Both FanDuel and DraftKings released statements supporting the passing of S8153, and further thanked supporters for campaigning for regulated DFS services for New York. (FanDuel statement: https://newsroom.fanduel.com/2016/06/18/)
For New York state S8153 classifies DFS services as an ‘interactive fantasy sports contest’ which can be further defined as;
“a game of skill wherein one or more contestants compete against each other by using their knowledge and understanding of athletic events and athletes to select and manage rosters of simulated players whose performance directly corresponds with the actual performance of human competitors on sports teams and in sports events.”
Passing S8153, the bill will contain the following regulatory provisions;
- Tax – 15% on gross gaming revenues attached to NY state players
- Tax – additional 0.5% DFS revenue tax capped at $50,000
- Prevention of play by minors – minimum DFS player age to be 18
- Sites must allow players to have the right exclude themselves from services
- All DFS operators must monitor customer base for problem/compulsive players
- Operators must adhere to NY state regulations on promotion and marketing of DFS services
- Sites must identify all“highly experienced players” in any contest.
- Sites must ensure that players funds aresegregated from operational funds.