New York legislature okays fantasy sports bill

The fantasy sports industry was on the verge of a major win after the New York State Senate early Saturday approved a bill to legalize and regulate the virtual competitions.

The legislation, which had been opposed by gambling critics, now needs only to be endorsed by Governor Andrew Cuomo after winning approval Friday from the assembly. Fantasy sports advocates believe Cuomo will sign the bill, but he has not taken a position.

If enacted, the bill would permit the largest and best capitalized operators, FanDuel and DraftKings, to return to the New York market in time for the critical American football season.

The two companies halted business in the state after New York Attorney General Eric Schneiderman sued the companies, arguing the games violate the state's anti-gambling laws. New York has been seen as a key bellwether in other big US states, including California, Florida and Texas.

In fantasy sports, contestants pick a fantasy roster of professional athletes from leagues such as the National Football League and Major League Baseball. As the real games take place on the field, the standings of fantasy players are ranked based on actual plays on the field.

Entrants must pay a fee to enter. The biggest competitions award prizes of $1 million or more.

The industry had been in a period of torrid growth prior to the challenge last fall from Schneiderman, which sparked similar crackdowns in a number of other states, including Illinois and Texas.

FanDuel hailed the bill, which passed the Senate by 45-17 and the assembly by 91-22.

"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 FanDuel chief executive Nigel Eccles.

"The bill represents a thoughtful legislative process where bipartisanship and willingness to compromise carried the day and we are extremely hopeful Governor Cuomo will sign the bill."

"I believe this is only the beginning of what has become a revolution in how fans experience sports," said DraftKings chief executive Jason Robins, adding that he was hopeful Cuomo "will soon sign the bill into law."

- Gambling or not? -

The bill taxes the industry and explicitly states that fantasy sports is not gambling, even as it places oversight of fantasy sports under the New York state gaming commission.

The measure also includes a number of requirements similar to those casinos, such as criminal background checks of fantasy sports registrants, bans on participation by minors and toll-free numbers to call for those those seeking help for an addiction to gambling.

For the fiercest critics of the measure, none of that is sufficient however.

"You've got to tie yourself in a pretzel to somehow say this is not gambling," said Thomas Abinanti, a Democratic assemblyman who opposed the bill.

But Dean Murray, a Republican in the Assembly and a DraftKings account holder, countered that the games differ from gambling because they favor deep knowledge of pro sports and are not solely based on luck.

He likened the practice to the day-trading of stocks, another vital industry, and said New York was wise to encourage a growing industry that will garner revenue for the state.

"This is a win for the literally millions of people in the state who play and enjoy fantasy sports," Murray said.

"It's also a win for the state for the millions of dollars it will generate."