Daily Fantasy Sports can resume action in New York

On Monday, the Gaming Commission of New York decided to grant temporary permits to five daily fantasy sports companies to provide the opportunity to operate in the state once again. DraftKings and FanDuel are among the five DFS operators who now have permission to get back to business in New York State.

The temporary permits allows the DFS companies to be back in action just in time as the playoffs begin in Major League Baseball and with the National Football League preparing for their season. The temporary licensing was granted just after a state law was recently passed that allows DFS to take place legally within the state.

Once the permits were granted, operators wasted no time getting back online. DraftKings was providing contests just hours after the permits were announced to the public. CEO of DraftKings, Jason Robins, stated that the MLB pennant races are heating up and the NFL season is right around the corner so the company is thrilled to able to provide DFS contests to New Yorkers once again. The company thanked the state and welcomed players back to the action.

The three additional operators who earned temporary permits were Draft, FantasyDraft and Yahoo. With the DFS games, players have the ability to create a roster of athletes from a given sport. The actual performance statistics of the athlete are then used to determine who wins. Entry fees are paid and prizes are provided to the players who are able to perform better than other contestants in the same category.

Back in March, DraftKings and FanDuel stopped offering DFS services in the state as Eric Schneiderman, the Attorney General, declared the games were illegal gambling based on state law. Lawmakers have since passed a bill that defined DFS as a game of skill. The passage of the law now allows DFS activity to take place within the state. The main argument for DFS is whether or not the activity is one of skill or chance. The law was signed by Governor Andrew Cuomo earlier this month.

Operators will have to pay an annual fee up to $50,000 to take part as well as pay 15% in taxes on revenues earned. Players have to be 18 years of age or older to take part and contests are not allowed on high school or college sports. Long term regulations are still in the works by the Gaming Commission but the temporary licensing allows operators to get up and running while regulations are being worked out.

Daily Fantasy Sports can resume action in New York