Daily Fantasy Sports Now Legal In New York 

​On Monday, Governor Andrew M. Cuomo signed legislation to legalize interactive fantasy sports in New York State. The legislation requires that fantasy sports companies register with, and operate under regulations issued by, the New York State Gaming Commission. 

Once fully implemented, DFS companies will generate approximately $4 million in revenue to fund state education aid. 

“Daily fantasy sports have proven to be popular in New York, but until now have operated with no supervision and no protections for players,” Governor Cuomo said. “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.” 

Legislation Establishes Important Consumer Protections Under New Regulations

Interactive fantasy sports are games of skill in which contestants assemble a roster of athletes in a given sport and use the actual performance statistics of those athletes to determine the contest’s winner. Contestants pay fees to enter the contest and, if successful in performing against their opponent, win prizes. 

Attorney General Eric T. Schneiderman issued a statement saying in part:

“My job is to enforce the law and protect New Yorkers from illegal or unscrupulous conduct.  Today, the Governor has signed a bill that amends the law in order to legalize daily fantasy sports contests, with consumer protections for New York players.”

Schneiderman said that he would enforce and defend the new law. He added, however, that his office will continue moving forward on the false advertising and consumer fraud claims for past misconduct by Draft Kings and Fan Duel.

In addition to establishing the means for regulating interactive fantasy sports in New York State, this legislation also takes steps to institute important consumer protections for players for the first time, some of which include offering introductory procedures to new players, identifying highly experienced players, prohibiting the participation of minors and protecting players’ funds upon deposit.

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