New York Governor Andrew Cuomo [official website] signed legislation [press release] Wednesday that would legalize daily fantasy sports in New York state. The law, SB 8153 [official website], serves to legalize forms of daily fantasy sports, like Draft Kings, while requiring that companies using this platform register with the New York State Gaming Commission [official website], and adhere to its regulations. Cuomo said that SB 8153 “strikes the right balance” between providing consumer protection and allowing daily fantasy sports betting, which, until now, “operated with no supervision and no protections for players.” In addition to providing this added protection, which includes identifying highly skilled players and protecting players’ money once deposited, Cuomo and the state legislature estimate this bill will generate $4 million dollars for state education funding.

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. Last 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].