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New York Racinos Want DFS
NEW YORK RACINOS IN BID FOR DAILY FANTASY SPORTS
With legislation progressing in both the House and the Senate, racetracks want in.
With daily fantasy sports legislation making progress in both the House and the Senate in New York state the New York racing industry had suddenly taken an interest, proposing that daily fantasy sports in the state be restricted to the racinos and three commercial casinos currently under construction in New York.
The New York Gaming Association, a trade body representing the interests of New Yorks nine racino operators, proposed the plan, and was immediately criticised by DFS bill proposer Sen. John Bonacic, who told the Senate Racing and Wagering Committee that the Association was trying a greedy power play to grab a piece of the DFS action.
Sen. Bonacic was later supported by Rep. Gary Pretlow, who is sponsoring a DFS bill in the state House and said:
“They (the NYGA) have shown no interest in the past. (DFS) has been around for years. Weve not heard a peep out of anyone. Now that were going to legalize them and the states going to reap some benefits from the operations, the racinos and casinos say they want a piece of the action.
Meanwhile Sen. Bonacic has claimed that his Senate DFS bill, and Pretlow’s equivalent in the state House, is basically similar.
Bonacic pointed out that the only significant differences between the two proposals, which are both progressing through relevant committees, are on the question of how much operators should pay the state.
Bonacics bill has suggested a fee that would amount to the lesser of $500,000 or 5 percent of DFS gross revenues, while Pretlows has a sliding scale fee structure intended to protect the smaller DFS companies.
The New York Gaming Association is currently opposed to the Bonacic and Pretlow bills on grounds that legalising DFS without involving its members could have an adverse impact on their business.
Pretlow has scoffed at the idea, saying that under the proposals there was nothing to stop the NYGA members from starting their own DFS enterprises and competing in an open market.
On the Bonacic bill, an expected debate in the Senate Finance Committee did not take place Thursday as anticipated following the bills passage through the Senate Racing and Wagering Committee Wednesday.
Instead, Senate staff said the discussion will take place next week...with the Legislature adjournment date of June 16 looming ever larger.
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