The lobbying efforts of DFS giants DraftKings and FanDuel to legalize daily fantasy sports in New York, cost 0,000.
That figure comes from records filed with the state’s Joint Commission on Public Ethics.
More than half of that figure was spent in the final two months of the state Legislature’s 2016 session as lawmakers debated and passed a bill. New York Governor Andrew Cuomo signed the bill last week.
The spending included hiring of several lobbying firms and $249,890 spent on an ad campaign, records show. Also included was $100,000 to former NFL quarterbacks Jim Kelly and Vinny Testaverde to appear in Albany in June to urge passage of the legislation.
FanDuel, DraftKings and Yahoo had shut down their sites in New York in March as part of an agreement with State Attorney General Eric Schneiderman, who had accused them of violating state gambling laws. The agreement was intended to give the Legislature time to clarify the issue.
The bill adopted by the legislature and signed by Cuomo defines daily fantasy sports as a game of skill instead of chance. It also gives the state Gaming Commission power to regulate the sites.
And daily fantasy sports is now legal in Massachusetts, the eighth state to legalize the games, allowing them to offer cash prizes. Governor Charlie Baker last week signed a bill that legalizing daily fantasy sports, but only until July 2018, in order to give the legislature time to draft a comprehensive bill on the subject.
The DFS segment was just part of an omnibus economic development bill. It allows any DFS operator to offer the games within the parameters already created by state Attorney General Maura Healey, who earlier this year ruled that DFS is not gambling. But her ruling still does not create a legal framework under which the games can operate for long without legislative oversight.
One of the most well known DFS operators is DraftKings, which is based in Boston. CEO Jason Robins commented last week, “Today is a special day for DraftKings. Boston has always been our home, and on behalf of more than 300 DraftKings employees, we want to thank Governor Baker and the legislature for supporting our company in the city we love.”
He added, “Since we started our business in 2012, we have embraced the vibrant technology community in Massachusetts. The tech sector, along with our world-class sports teams, has provided much of our inspiration over the years as we have evolved as a sports-tech company. Numerous members of this community came together to support this initiative and we are fortunate to be part of such a tight knit network of talented entrepreneurs and innovators. This new law gives us the foundation we need so that we can continue to grow right here in Boston.”
Other states that have legalized the games are New York, Colorado, Missouri, Indiana, Virginia, Tennessee, Mississippi, Kansas and Maryland. States that are considering legalization soon include Pennsylvania, New Jersey and California.
