State lawmakers appear to be moving toward an agreement on legislation that would permit daily fantasy sports (DFS) in New York State, with key Senate and Assembly committees advancing similar bills this week.
Last November, State Attorney General Eric Schneiderman ordered the two largest DFS operators to stop operating in New York State, saying that they were engaging in illegal gambling under New York law.
The bills differ on registration periods and fees. The Assembly bill provides for a three year registration period, while the Senate proposes a ten year period. The Senate bill would impose a registration based on the operator’s revenue and capped at a $500,000; the Assembly bill proposes a three-tiered system with varying rates.
The Attorney General has not issued a formal opinion on whether these bills would make DFS legal in New York State, since the state constitution largely prohibits gambling. But the sponsors believe that by characterizing DFS as a game of skill addresses the issue.
While the two houses appear to be moving toward agreement, opposition is coming from opponents of expanded gambling and the New York Gaming Association, which is made up of the state’s “racino” operators.