Millions of our fellow New Yorkers were shutout of popular online fantasy-apps like Fanduel and Draftkings this year, but a new round of political proceedings could have the apps return in full force.
This week a new fantasy sports law passed the New York State Senate and Assembly, the votes ended 45-17 and 91-22, respectively. The legislation clarifies New York state laws to affirm the legality of fantasy sports and installs consumer protections by creating a clear set of regulations that all fantasy sports companies must follow.
The bill’s passage in New York is just a small part of the national state legislative progress that has taken place over the last six months. In that time seven legislative bodies – Colorado, Indiana, Mississippi, Missouri, New York, Tennessee, and Virginia – have now passed a fantasy sports bill.
“New York fantasy sports fans rallied – with more than 100,000 emails and thousands of phone calls to legislators – and legislators heard them and responded,” said Nigel Eccles, FanDuel CEO and Co-Founder. “The bill represents a thoughtful legislative process, where bi-partisanship and willingness to compromise carried the day, and we are extremely hopeful Governor Cuomo will sign this bill. We decided long ago to build FanDuel in New York because it’s the sports capital of the world and a thriving home for tech startups – a natural fit for fantasy sports. Our success is due in no small part to the people, infrastructure, partnerships and opportunities here, which very few locations in the world can offer.”
“New York is the seventh state to pass a fantasy sports bill just this year– frankly a remarkable amount of progress in a short period of time,” continued Eccles. “It speaks to the popularity of our game, the passion and advocacy efforts of our fans and the immense potential states are seeing in the fantasy sports industry.”
According to Fanduel if the bill is signed into law, it will, “Protect games more than three million New Yorkers play and many companies will be able to offer fantasy contests in time for the upcoming NFL season.” The company also stated that the bill will, “Solidify New York State as an incubator for this fast-growing piece of the technology industry,” adding that nearly 30 fantasy sports companies are based in New York.” Those companies include fantasy data, analytics, and media companies.
The new bill will also add new restrictions and regulation to the practice of fantasy sports betting. These companies will now have to ensure players are 18 and above; and they will be required to be registered and vetted by the State. Apps will also have to allow players to exclude themselves from contests and be allowed to permanently close their accounts at any time.
The new law will also prohibit any contest based on a collegiate or high school sport or athletic event; and “high experienced players” must be clearly identified for all users to see. The sites will also have to disclose the number of entries a player may submit to each contest, and the number of total entries allowed for each contest; which many already did.
Other standards include new measures to protect the privacy and online security of players and their accounts; and player funds must be kept separate from operating funds, ensuring player money is accessible at all times.