State Senator Joe Addabbo is pushing a new bill in New York to expand fantasy sports games and update rules to keep pace with fan preferences and changes in the market. The proposed law would allow the state Gaming Commission to license a broader set of operators and generate $150 million in new revenue over several years by charging a $5 million license fee to new operators and a renewal fee of 1% of gross revenues every five years. However, the bill also includes raising the age to play fantasy sports from 18 to 21.
Daily fantasy sports are competitions in which people battle each other online for prizes by building a team of professional athletes from a professional league. Players earn points based on their chosen athletes’ on-field performance. The industry’s status in New York has been complicated by years of legal battles on whether it constituted gambling or skill. The bill seeks to correct this by updating regulations to include new fantasy operators and contests such as Pick’Em and peer-to-peer contests.
Currently, the state Gaming Commission reports that operators with temporary permits to offer fantasy sports games in New York include DraftKings, FanDuel, Yahoo, Fantasy Draft, RUMBL, Fanamana, Data Force, RealTime Fantasy Sports, and others. However, popular operators Prize Picks, Underdog, Sleeper, and BetR are not included in the state’s fantasy sports law. The proposed bill aims to rectify this exclusion and make sure that all operators have the opportunity to offer their services in New York under updated regulations.
Despite the push to expand fantasy sports games in New York, State Conservative Party Chairman Gerard Kassar opposes the measure, citing concerns about compulsive gambling. Kassar believes that the expansion of fantasy sports, along with the addition of casinos and sports betting, could worsen issues related to compulsive gambling. This raises questions about the potential negative impact of allowing more operators and contests in the state.
According to the Fantasy Sports & Gaming Association, the majority of fantasy participants in the U.S. play professional fantasy football, with smaller percentages playing basketball, baseball, hockey, and soccer. This highlights the popularity of fantasy sports as a form of entertainment and competition among fans. By updating rules and regulations to include various fantasy operators and contests, New York aims to cater to the preferences of fantasy sports enthusiasts and generate additional revenue for the state through licensing fees and renewals.
Overall, the proposed bill by State Senator Joe Addabbo reflects a broader trend of updating regulations related to online gaming and fantasy sports to accommodate changing market dynamics and fan preferences. By allowing more operators to offer fantasy competitions and contests, New York hopes to tap into the popularity of these games while also addressing concerns related to compulsive gambling. The bill’s potential impact on the state’s economy and the gaming industry remains to be seen, but it represents a step towards embracing new forms of entertainment and competition in the digital age.
