The biggest fantasy of fantasy sports industry came true on Saturday the 18th June when New York legislature passed a bill legalizing and regulating the fantasy sports industry. The legislation now goes to Governor Andrew Cuomo’s desk, where it awaits his signature to become a law. The most talked about and discussed case in fantasy sports industry till date started on November 10th, 2015 when New York Attorney General Eric Schneiderman ordered cease-and-desist operations to industry giants DraftKings and FanDuel saying daily fantasy sports violates the state’s gambling laws.

FANTASY SPORTS FANS, REJOICE

With fantasy sports coming back to New York, sports fan can live and feel their favorite sports the way they used to in the past. Fantasy sports has proved its mettle in the past as one of the most amazing and effective ways to promote the real sports and leagues. It goes without saying that fantasy sports is a key strategy used by sports leagues or federations across the globe to increase their fan following and maintain fan engagement for a longer time.

What does the new bill mean?

Registration to do business

In order to run a fantasy sports platform offering paid-entry games, the operators need to apply for a registration to the New York gaming commission. The registrations are valid for the duration of three years and the commission would decide on the process of registration renewal. The commissioner has all the rights to reject or accept the application after scrutiny, which also includes the background check of the officers of the Applicant Company. Companies that offered contests in NY before November 10th, 2015 will be allowed to operate in New York until their application is either approved or denied.

State Taxes on Operators

According to the new law, all fantasy sports operators registered with New York gaming commission will be required to pay 15% tax on gross revenue derived from New York players and an additional .5% tax on revenues with an annual cap of $50,000.

Consumer Protection

1. The age of players playing on fantasy sports platform in NY must be 18 years and above.
2. Accurate odds of winning must be accurately specified in the advertisement and upon entry in a contest.
3. Enabling players to exclude themselves at any point from playing future fantasy games and avoiding losses.
4. Fantasy sports operators must clearly identify of highly experienced players on the site.
5. Operators must ensure that the sites must have a clear and separate fund management of operational funds and player funds.

Way forward

Looking at the history and considering the scope of this legislation, the legislation looks all set to become a benchmark and may determine directions for other states to follow. Vinfotech has been into the industry from last seven years delivering world-class and highly interactive fantasy sports platforms to operators across the globe. We have developed our fantasy sports framework in such a way that we can easily accommodate all the jurisdictional guidelines of the region where our clients (operators) are registered or licensed. We are all set to understand your idea and vision and build a fantasy sports platforms that are fully compliant with the new regulations and guidelines from the New York legislations.