New York Assemblyman
Gary Pretlow has introduced his long-awaited bill to regulate daily fantasy
sports (DFS) in the state, proposing a 15 per cent tax on revenue and
three-year licences for eligible operators.
The bill, A10473, aims to amend the New York Racing, Pari-Mutuel
Wagering and Breeding Law by adding a new article which covers the registration
and regulation of online fantasy sports contests.
“This bill offers
important consumer protections to ensure that all contests are safe and fair,”
Pretlow said. “Requirements such as limiting players to one active and
continuously used account, offering introductory procedures for players,
identifying highly experienced players, and depicting accurate representations
concerning the chances of winning in all advertisements will help to provide
transparency and fairness across all platforms.
“Measures to protect
the privacy and online security of players and their accounts, and requiring
registrants to protect players' funds upon deposit, as well as segregate such
funds from the companies' operating funds, would provide players with important
safety and security protections online.”
law would allow any operator that was offering contests to New York
residents prior to November 10th, 2015, to file an application for registration
with the New York State Gaming Commission within ninety days of the legislation
passing. During the application process, operators would be allowed to continue
DFS contests in the state, pending the outcome of the application.
Applicants will be
required to pay a registration fee based on DFS revenue, with a $100,000
registration fee for operators with revenue exceeding $200,000, falling to
$25,000 for revenue of between $100,000 and $200,000. Smaller operators who
generate revenue of $100,000 or less will pay a $5,000 registration fee.
operators will be required to renew their licences every three years,
paying a renewal fee based on their revenue in the year prior to renewal.
All contests on
collegiate or high school sporting events will be prohibited under the
legislation, and no contests can be organised for horse racing.
Operators would be
taxed at 15 per cent of interactive fantasy sports gross revenue, with Pretlow
stating that this would cover the cost of regulation.
Should it be passed
into law the bill would come into force immediately. It has been referred to
the Assembly’s Racing and Wagering Committee for further scrutiny.