Long Wait For New York Daily Fantasy Sports Almost Over, As Bill Heads To Governor

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Cuomo New York DFS

One way or another, daily fantasy sports will know its fate in the state of New York soon.

Gov. Andrew Cuomo has officially requested that the bill that would legalize and regulate paid-entry fantasy sports in the state be sent to his desk.

That means he has 10 days either to sign or veto the bill, or else it would become law automatically by his inaction, under legislative procedure in the state.

Backstory on the NY DFS bill

NY’s legislature passed the bill back in June, but it has been in limbo waiting for Cuomo to do something with it ever since.

DraftKingsFanDuel and most other DFS sites had exited the state after the “big two” DFS sites signed a settlement with NY Attorney General Eric Schneiderman in March.

Action on the bill will come before the NFL season gets underway; that’s the most important time of year for DFS sites in terms of revenue.

So now what happens in New York?

What happens if Cuomo signs it?

If he signs the bill, it becomes law immediately.

According to the law, operators must receive a “temporary permit” to offer paid-entry fantasy contests, and must apply to register in the state.

Sites that were in operation before November 10, 2015 — when Schneiderman issued his cease-and-desist orders to DraftKings and FanDuel — are eligible for the temporary permit.

The bill says the gaming commission shall offer the temporary permits. Some media reports indicated that this would happen fairly quickly if the bill were to be signed, so it appears that DFS sites registering in the state could be back in operation in short order.

What happens if Cuomo vetoes it?

If he vetoes it, it does not become law.

However, the legislature can override a veto should Cuomo decide to veto it. The legislature, however, is not currently in session after adjourning in June.

An override would require a two-thirds majority in both the Assembly and the Senate to take place. And while the bill passed by super majorities in both houses, a veto override would likely have to take place after the November elections, which could easily change the calculus on voting.

Cuomo’s office was reportedly involved in crafting some of the language that appeared in the final bill, but he and his staff have been tight-lipped on what Cuomo will do with the bill.

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