Start spreading the news... DFS is back in New York

Start spreading the news... DFS is back in New York

Thursday, August 25, 2016 Posted by Andy McCarron
Real money daily fantasy sports are back in New York

Following the decision to allow real money daily fantasy sports, operators have this week returned to New  York after the state Gaming Commission granted five temporary permits.

This comes at a great time for DFS operators, with the new NFL season kicking off on September 8; the big dogs of FanDuel and DraftKings will be able to resume business in New York, which had been a key territory for them prior to the temporary ban and investigation. The state reportedly accounted for 13% of the two operators’ business, with 1.1 million active players from New York between them.

Chris Grove, Legal Sports Report and Partner at Narus Advisors, told Totally Gaming about the importance of the New York decision for the DFS industry as a whole.

He said: “A New York return was absolutely critical for the DFS industry, not just in terms of revenue but also in terms of psychological and legislative momentum.

“A failure to get a bill across the finish line in New York would have left the companies headed for a nasty court fight with an uncertain outcome, a development that could have easily stalled the political process in other key states.”

Undoubtedly it’s a win for DFS, most notably FanDuel and DraftKings who have been fighting expensive legal battles across the States for months now, and in New York since November 2015.

New York  Commission Executive Director Robert Williams said: “While the commission continues work on formal regulations for these games, these temporary permits get companies up and running in New York State while assuring resident players that safeguards are in place.”

With the new regulations still being finalised, temporary permits have been issued to allow operators to re-enter the market. These have been issued with a grace period for the powers that be to perfect the final regulations which are expected to result in DFS taxes at a 15% gross gaming revenue rate.

Totally Gaming Says: There’s a feeling that the success of a regulated DFS sector in New York could save and re-energise an industry in jeopardy. With new regulations and taxes now in place however the likes of FanDuel and DraftKings will have to play it smarter than before, that is not blow their budgets on an all out marketing war, and with both now expanding their European operations it’ll be interesting to see what happens next.

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