New law legalizes return of online fantasy sports in New York

A new law in New York will allow online fantasy sports sites like DraftKings and FanDuel to resume business in the state.

On Wednesday, Gov. Andrew Cuomo signed the law, which labeled online fantasy sports contests “games of skill,” contradicting Attorney General Eric Schneiderman’s previous characterization of the sites as featuring games of chance akin to gambling, Fox5 reported.

“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,” Cuomo was quoted by Fox5.

DraftKings and FanDuel, which agreed to shutter their operations in the state in March, must now register with the New York State Gaming Commission, CBS2 reported, adding that New York has become the seventh state this year to legalize and regulate the online fantasy sports industry.

According to the new law, such sites must now pay an annual fee of up to $50,000 and be subjected to a 15 percent tax on their revenue, Fox5 added. People younger than 18 will be barred from playing, and the law prohibits the inclusion of college and high school sports.

AG Schneiderman planned to continue pursuing false advertising and consumer fraud claims against the companies, according to CBS2, which added that the state expects that the sites will generate $4 million in tax revenues.