When two of the largest commercial fantasy sports gaming companies, FanDuel and DraftKings, were sued by the State of New York and subsequently agreed to voluntarily stop taking money from New York participants, they did so with the understanding that lawmakers in Albany would pass legislation on the issue of how to handle this new industry. It appears that legislation is finally taking shape.
As the legislative term comes to a close, committees in both houses of the New York state legislature have advanced bills proposing legislation requiring registration fees for commercial operators and a prohibition against players under 18 years of age. Legislation would also bar contests based on amateur sports at the collegiate level and horse racing.
Last year, New York cracked down on companies providing daily fantasy sports gaming after a disgruntled player, leading to the NY Office of Attorney General to step in to file a lawsuit demanding return of all money made within the state and restitution of funds. After much legal and political wrangling, it appears that the legal battle is drawing to a close upon passage of these new regulations.
Should the legislation fail to pass, the First Department will be taking up the case in the fall.
We will update the reader when more information comes available.
*Gene Berardelli may be contacted at: GeneBerardelli@ipglegal.com.
Gene is a New York street-smart attorney with an extreme passion for success. Gene specializes in litigation, arbitration and general corporate law for New York-based and international clients. He, also, is the host of a popular New York talk radio program.
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