New York Governor Andrew Cuomo signed a bill into law that formally legalizes and regulates fantasy sports contests, reports the New York Times. The industry had come under scrutiny from state attorney general Eric T. Schneiderman after a number of consumer fraud claims and class-action lawsuits were filed over the practice. The new bill will regulate the fantasy sports industry in New York, of which DraftKings and FanDuel are two of the biggest operators. Announcing the signing of the bill Governor Cuomo said:
“Daily fantasy sports have proven to be popular in New York but until now have operated with no supervision and no protections for players. This legislation strikes the right balance that allows this activity to continue with oversight from state regulators, new consumer protections and more funding for education.”
However, assemblyman J. Gary Pretlow was more to the point as to what was probably the most important factor in deciding if the fantasy sports industry should be given legal backing:
“Fantasy sports are more than online games — they have the potential to generate millions of dollars in revenue for New York State.”
In other words, everyone wants their piece of the $150 billion fantasy sports industry.