Schneiderman: Fantasy Sports Will Be Allowed, But Regulated
June 30, 2016
As published on State of Politics on June 24, 2016.
Attorney General Eric Schneiderman indicated on Thursday the measure approved to legalize and regulate daily fantasy sports in New York will satisfy the terms of a settlement reached with operators DraftKings and FanDuel earlier this year.
“The settlement set up a situation in which if we could pass legislation, set up a law, before the end of June, then we would not pursue the litigation further,” Schneiderman said during a news conference. “This would resolve it. It’s now legal.”
The Democratic-led Assembly and Republican-controlled Senate last week approved legislation to allow fantasy sports operators to provide the online service in New York, with licensing and fee structure in place.
The measure, yet to be signed by Gov. Andrew Cuomo, comes after Schneiderman last year sued fantasy sports operators, arguing their businesses were essentially offering gambling illegal under the state’s constitution.
At Thursday news conference in western New York, Schnedierman said his office still retained the power to sue the companies for false or deceptive advertising.
“Daily fantasy sports are going to be legal, they’re going to be taxed, they’re going to be regulated,” he said. “That’s what I’ve been calling for all along. The settlement we reached is not only consistent with this legislation, it really provided some incentive to get it done and get it done quickly.”