Days after constitutional ruling, Senate bill emerges to expand New York’s DFS

Senator Joe Addabbo introduced an amendment to the bill to expand daily fantasy sports in new York.

Invoice S8628 would allow DFS platforms that did not operate in the state prior to November 10, 2015 to apply for temporary permits to operate in the state pending approval from the New York State Gaming Commission.

“Obviously New York is very different from what it was in 2015 when (former Senator) Bonacic and this legislative body drafted their bill,” Addabbo said. “There were only two operators then (FanDuel and DraftKings), and I just think there’s definitely a market for more operators now.”

Senate DFS Bill Details

Currently, the NYSGC already allows DFS operators to apply for temporary permits. As it stands, any entity that offered DFS in New York before November 10, 2015 is eligible to apply.

Addabbo’s proposal would essentially allow any other DFS operator to apply for a temporary license. Even though they never offered fantasy sports in the Empire State to begin with.

This would be a stand-alone bill that Addabbo would try to pass after the April 1 state budget, with a state legislative session through June.

Additional operators could generate more tax revenue for financing education.

Under the wording of the 2015 bill, according to Addabbo, daily fantasy sports operators in New York pay a tax rate of 15% on total gross gaming revenue (GGR).

New York DFS takes on new life after favorable ruling

Daily fantasy sports have been ruled constitutional in the state by the New York Court of Appeals Tuesday after a long and arduous legal battle.

Essentially, DFS got the definition – under the 2016 law – as a game of skill as opposed to a game of chance, like games of chance.

Currently, 15 DFS operators have obtained temporary permits to offer fantasy sports in New York:

  • DraftKings
  • FanDuel
  • yahoo
  • Fantastic project
  • Disorganized
  • Synkt Games, Inc. d/b/a LetsRUMBL
  • Fanamana, Inc.
  • DataForce, LLC
  • Real-time fantasy sports
  • For gamers by gamers
  • Vauntek, Inc.
  • Sports hub technologies
  • MastersFantasyLeagues.com
  • Fantasy Boom
  • Full Time Fantasy Sports, LLC

Two other major gambling issues – the three casino licenses in the downstate and the inclusion of minorities / expansion of the online sports betting operator – await their fate in negotiations at the April 1 deadline is approaching.

Norman D. Briggs