After months of hard work, yesterday was finally the day to dream of a legalized system for fantasy sports betting in New York. Yes, you read it right. The New York Assembly approved the ordinance allowing sports betting operators to accept bets on daily fantasy sports. This is being taken as the millstone verdict from the house of representatives who have recently been under lots of pressure from every industry giants including of curse DraftKings and FanDuel to allow such kind of betting within the state itself since Government was losing millions of dollars in tax revenue by forcing bettors to place their bets using offshore fantasy sport betting services providers. In the house, the bill got the approval from 22 members with a strong defense that DFS competitions are not gambling hence they do not violate any federal law while number of members opposing the bill was just nine – a good shortfall of three votes! Now, ball is in the New York Governor Andrew Cuomo’s court who has to sign the bill in next ten days and then fantasy sports betting will officially be allowed inside the New York.
The next course of action for the operators, who are already offering their services in the state, is to apply for a valid license and until then they can temporarily continue offering DFS services until any decision over their application is taken up by the gaming commission and if they are permitted they will be under the revenue tax ambit which is 15% on gross revenue along with additional 0.5% tax subject to a ceiling of $50,000 annually. Notably, only operators who have been in the business since prior to November 10, 2015 will be allowed to continue their services.
Talking about the new bill and how it could convince a majority of House members, Assemblyman J. Gary Pretlow, chairman of the Assembly’s racing and wagering committee and the sponsor of the bill, said on the Newyorkupstate.com website, “We concluded this is not gambling. This is not a violation of the constitution. The legislative findings in this legislature are that this is not gambling, and therefore not subject to the provisions of the constitution. Three and a half million New Yorkers want to participate in these games.”