New York Attorney General Eric Schneiderman, who has been leading the prosecutorial charge against daily fantasy sports, must be gnashing his teeth at the news Wednesday that a new DFS legalisation bill has been introduced in the state Senate.
The influential proposer of the bill – S 6793 – is Sen. John Bonacic, chairman of the state Senate Committee on Racing, Gaming and Wagering, and a consistent supporter of legalised online poker (see previous reports).
The new bill does a step further than simply recognise DFS as a skill game…it proposes a full-on stringent regulatory regime for the industry in New York state, amending the racing, pari-mutuel wagering and breeding law and the financial services law, in relation to interactive fantasy sports. It includes provisions to:
* Create a Fantasy Sports Contests Division within the Financial Frauds And Consumer Protection Unit to promulgate regulations and license operators;
* Allows DFS operates already active in the state prior to last November 10 to continue to offer their products whilst their registration process is ongoing;
* Imposes a one-time fee of $500,000 which can be applied, in whole or in part, against an operator’s tax obligation for a 36-month period after receiving a license;
* Imposes a tax rate of 15 percent of GGR on revenue from New York players;
* Establishes a minimum age limit of 18 years;
* Bans DFS contests involving collegiate sporting events or horse races;
* Exempts DFS from the part of the NY penal code relevant to gambling;
* Makes provision for consumer protections, problem gambling, security and the exclusion of employees from playing contests
Th bill can be accessed here: http://legislation.nysenate.gov/pdf/bills/2015/S6793