Senate bill would keep fantasy sports legal in NY

A senator has introduced legislation to effectively prevent fantasy sports from being considered illegal gambling under New York state law.

Meanwhile, a state assemblyman is planning hearings on the issue that has grabbed national headlines since Attorney General Eric Schneiderman moved to shut down FanDuel and DraftKings from operating in New York.

Sen. Michael Ranzenhofer (R-Amherst) introduced a bill Monday that “excludes participation in any fantasy or simulation sports game or educational game or contest meeting certain conditions from the definition of ‘contest of chance.’ ”

The distinction is important because Schneiderman has argued that fantasy sports are a “game of chance,” not skill and, therefore, a form of gambling not permitted by the state. The types of gambling allowed in New York are state lottery games, state-sanctioned casinos and horse racing and Native American casinos.

Ranzenhofer had yet to provide bill text to outline how exactly his proposal would change state law.

 A Schneiderman aide contended the filing of proposed legislation shows fantasy sports companies know they face a legal issue about the legitimacy of their operations.

“DraftKings and FanDuel have hired a fleet of lobbyists to convince the Legislature to legalize their gambling operations.  How does that square with these companies’ insistence that their sites are presently legal?" Schneiderman spokesman Damien LaVera said.

Across the hall of the State Capitol, Assemb. James Gary Pretlow (D-Mount Vernon) is planning a Dec. 8 hearing in Albany on laws covering fantasy sports, an aide said. Pretlow, chairman of the Assembly Racing and Wagering Committee, is considering proposing legislation but hasn’t acted yet, the official said.

Schneiderman, a Democrat, sent a “cease and desist” letter to FanDuel and DraftKings, which control about 95 percent of the fantasy sports market, blocking them from operating in the state. The companies responded by suing.