Less than a year after New York Attorney General Eric Schneiderman issued fantasy sports websites FanDuel and DraftKings a cease-and-desist letter, declaring the companies were "engaged in illegal gambling under New York law," state legislators passed a motion to allow the sites to renew business.
According to a report by The Buffalo News, "the deal defines daily fantasy sports as a game of skill and, therefore, a legal contest that does not violate the state's gambling ban on games of chance." The state government plans to personally regulate the fantasy sports industry, and will collect registration fees from companies like FanDuel and DraftKings.
The main difference between the state's decision last year and now seems to be that the government is making money off of daily fantasy sports, and at least one legal expert sees the danger in New York going back on their fantasy sports ban.
Steve Kallas, local New York radio station WFAN's legal analyst, spoke to a Fox 5 reporter candidly about the new legislation, saying that "it's always been about the money" for the state.
"As we all know gambling, this is gambling," Kallas said. "They're somehow gonna couch an exception to make this not gambling."
According to Fox 5's report, the deal with FanDuel and DraftKings garners the state "$150,000 a year from each company, plus 15 percent of each business's in-state revenues after the gaming hosts distribute cash prizes."
That's a lot of cash! And Kallas is not happy about New York's new revenue stream.
"I think sports gambling is coming," he said ominously, "and it's going to be: How can the states get money?"
The legislation still must be signed off by Gov. Andrew Cuomo, but it seems unlikely he'll turn down such hefty funds.