Tax harvest from daily fantasy sports in New York disappoints

Tax revenues from New York daily fantasy sports companies have fallen far short of the $25 million predicted by lawmakers who approved the regulation of the genre in 2016, the Associated Press news agency reports, noting that DFS tax revenues last year were only $3 million, and that just 15 licensed operators are still active in the state market.

New York Assemblyman Gary Pretlow, the chairman of the Assembly Committee on Racing and Wagering, said: “I expected a little bit more but $3 million is better than no million,” after the committee reviewed the DFS performance.

Operators say that part of the problem is the lack of fully approved regulations, which the state Gaming Commission has still not published. This is stopping them from expanding their businesses, with outfits like FanDuel keen to add fantasy golf and soccer, but constrained from doing so until the regulations have been published.

The DFS sector could also generate more business if it was allowed to offer “real-time” fantasy wagering, enabling fans viewing NBA and other games to make in-play bets, according to the trade body Fantasy Sports Trade Association.

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