[JURIST report] The New York Senate [official website] on Saturday passed a bill [S6305] to legalize fantasy sports amid national concerns that the activity qualifies as illegal gambling. The bill would require [NYT report] frequent and highly-skilled players to sufficiently identify themselves online to prevent them from taking advantage of casual players. Fantasy sports sites would also be required to give 15.5 percent of their profits to an education fund managed by the state lottery. While Attorney General Eric Schneiderman [official profile] has been an avid opponent of the fantasy sport industry, he allowed legislators to handle the matter and has remained neutral to the bill so far. Schneiderman, however, has expressed his intention to continue legal action against industry leaders DraftKings and FanDuel [official websites]. The bill now awaits approval from Governor Andrew Cuomo [official profile] who has suggested support through modification propositions.

Many officials have stated that online fantasy sports may be an illegal form of gambling. In April the Tennessee Attorney General issued an opinion [JURIST report] stating that fantasy sports amounts to illegal gambling within the state. Hawaii Attorney General Doug Chin released an advisory opinion in January declaring [JURIST report] that daily fantasy sports websites in which players pay to participate are considered gambling and are therefore illegal in the state. Also in January Texas Attorney General declared [JURIST report] daily fantasy sports websites illegal within the state. Earlier that month the Appellate Division of the New York State Supreme Court granted [JURIST report] FanDuel and Draftkings a stay allowing them to continue to operate within the state during their appeal. In August the US Court of Appeals for the Third Circuit ruled against New Jersey, deciding 2-1 to uphold [JURIST report] the federal ban on sports betting in all but four states. In December 2011 the US Department of Justice clarified its stance on online gambling [JURIST report] in a memorandum opinion holding online non-sports related gambling that crosses state or international borders is not covered by the Wire Act of 1961 [text, PDF].