FanDuel & DraftKings enter crucial week of regulatory hearings

newyorkNew York legislators have been in advanced talks on the potential legislation of daily fantasy sports (DFS) which could see a conditional bill drafted for the legal/licensed framework of DFS state services.

Leading DFS operators FanDuel and DraftKings have been under investigation from New York Attorney General Eric Schneiderman since October 2015, following damaging allegations of misuse of game and player data by its employees.

Schneiderman would order a ‘cease & desist’ injunction on the operators, which would be immediately contested by both companies.

However, following months of legal disputes within New York courts, both FanDuel and DraftKings confirmed that they would temporarily discontinue their services in order for state legislators to review DFS legal circumstance.

New York legislators have been tasked with drafting a legal framework suitable for the industry’s day-to-day operations, outside stakeholder concerns and public policy relating to gambling, which may be impacted by legalised DFS services.

US business news sources report that law makers will likely draft strict policies’ on underage restrictions, employee practices, state DFS taxes and licensing and a further complete ban on collegiate sports and promotions.

Last week FanDuel threw its weight behind a proposed bill introduced by Senator John Bonacic, who will look to reform Bill S6793A on New York state pari-mutuel and race wagering by attaching DFS legislative provisions.

Bonacic’s bill reform is set to be heard by the Senate Finance Committee. Feeling positive on its progress, Bonacic stated that it represented the best chance on implementing quick and effective policy for DFS.

The importance of New York as a DFS legal jurisdiction for FanDuel and DraftKings cannot be understated as the state holds its biggest active player pool with a reported 1.1 million users, representing between 13-15% of the combined operators’ customer base.

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