New York lawmakers on June 18 enacted a bill that would legalize paid daily fantasy sports (DFS), but it must pass the Governor’s review, first.
New York Governor Andrew Cuomo, like his predecessors, calls upon bills awaiting his signature as he sees fit. The longtime practice gives the state’s governors time to review bills before signing them into law.
Cuomo can choose to review and sign the DFS-enabling legislation at any time he likes during the summer or fall.
While DraftKings and FanDuel unquestionably would like to have that measure signed into law for the second half of the Major League Baseball season, there’s still ample time for Cuomo to sign it before the fall football season begins.
Meanwhile, a standing agreement with New York Attorney General Eric Schneiderman prevents the DFS operators from doing business in the state until the Legislature passes a bill legalizing paid DFS and Cuomo signs it into law.
The initial settlement with Schneiderman and DFS operators was to expire on June 30, but it has been extended and likely will remains in effect until Cuomo either signs or vetoes the measure.
Cuomo could do nothing after calling up the bill and simply allow it to become law without signing after a 10-day review period.
As passed, the bill would levy a 15.5 percent tax on DFS, which could generate potentially millions of dollars in annual state revenues.
Even if the paid contests are legalized and DraftKings and FanDuel become legal operators in New York, Schneiderman says he likely will pursue a case against them for prior violations of the state’s advertising laws.
The settlement between the state and the DFS operators only terminates any claims involving illegal gambling if lawmakers legalize it. The agreement allows Schneiderman to continue pursuing false advertising claims arising from ads stating paid DFS was legal in New York.
If, however, Cuomo does not sign the bill and DFS remains illegal, Schneiderman may resume pursuing illegal gambling claims.
