New York Issues Daily Fantasy Sports Permits
Just days after a New York State’s Daily Fantasy Sports law was passed, the New York Gaming Commission announced it has issued temporary permits to 5 DFS operators. The companies are DraftKings, FanDuel, Yahoo, Fantasy Draft and Draft.
According to the Commission, it has completed a legally required thorough review of the temporary permit applications from these five companies, ensuring required consumer protections, player safeguards and advertising restrictions are in place. The permits specify: Applicant is permitted to offer in New York State only those types of games and contests that Applicant offered to the public in New York State prior to November 10, 2015. The permits are not assignable. Additionally, the permit shall be effective until 90 days following the promulgation of regulations to effectuate the registration process to offer interactive fantasy sports in New York State or, if Applicant applies to be an interactive fantasy sports registrant in New York State, then this temporary permit shall be effective until Applicant is registered as an interactive fantasy sports operator or Applicant’s application for registration as an interactive fantasy sports is denied.
The permits require Registered Operators to pay a tax equivalent to 15 percent of their interactive fantasy sports gross revenue generated within the state and a tax equal to ½ of 1 percent, but not to exceed $50,000 annually.
New York also requires a significant number of consumer protection measures and advertising restrictions.