New York regulators seek to exclude prop betting from fantasy sports law

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[toc]The New York State Gaming Commission seeks to limit what a Fantastic Sports Act 2016 allows via a draft regulation, according to a copy of the document obtained by Legal sports report.

The limitations would seek to ban any fantasy contest that looks like “Bet on proposal”. Such a model is different from the salary cap model used by DraftKings and FanDuel where users select a list of players.

It is a movement opposed by the state Senator Jean Bonacic – which sponsored the bill legalizing daily fantasy sports – in a letter to the gaming commission also obtained by LSR.

Doesn’t fantasy sports equal betting on props?

The Gaming Commission has proposed numerous amendments to the New York DFS law. The most important thing would be to narrow the scope of the law to exclude things that look less like traditional DFS and start muddying the waters. sports betting.

You can read the draft regulation – in a note from the NYSGC General Counsel Edmond Burnshere.

5602 (Authorized competitions): criteria for authorized competitions. These would include statutory standards as well as a requirement that contests must not be based on proposition bets and do not have the effect of mimicking proposition bets. Competitions in which a competitor chooses whether an individual athlete or a single team will exceed an identified statistical performance would be prohibited.

The types of competitions would be subject to the approval of the Commission, including proposals to offer competitions for a sport, league, association or organization not previously offered, allowing the Commission to assess the risk of corruption underlying sports competitions.

What is a side bet?

The proposed changes do not seek to define proposition bets. But generally, it is a bet on the occurrence of an event within a game which does not directly or totally affect its outcome.

Examples could include:

  • Will Tom brady Where Aaron Rodgers to score more fantastic sports in NFL games on Sunday?
  • How many home runs Aaron Judge shot tonight: more or less than 1.5?
  • Will James lebron to score more or less than 30 points?

Who would these regulations affect?

They don’t seem to affect anything offered by the two industry behemoths DFS, FanDuel and DraftKings.

This could potentially reduce the offers of some other operators, especially those based in New York. Boom Fantasy and one play fantasy product like FastPick who now lives in New Jersey.

The two offers are quite different. But the two seem to conform to more than a dozen fantastic sports laws as it is written and the exclusion of fantastic sports in the federal government Internet Illegal Gambling Law Enforcement Act (UIGEA).

Boom Fantasy is not much different from DraftKings and FanDuel in gameplay mechanics, in which users enter contests with entry fees, trying to beat other users. The difference is that it asks users to make a series of predictions about player performance, rather than creating a fancy roster. (However, you end up with the equivalent of a roster of players at the end of the selection process.)

FastPick, which is powered by a platform developed by SportAD, is much more like incidental betting on players. A FastPick user must select which of the two players will score the most Fantasy Points and must correctly select three to ten of those matchups. All selections must be correct in order for the user to win a cash prize.

Why is NY Gaming doing this?

The Gaming Commission is given regulatory power to oversee the fantasy sports industry through the 2016 law.

In the memo, Burns writes that the amendments attempt to “ensure that IFS (Interactive Fantasy Sports) competitions remain within the scope of activities authorized by the legislature.”

The author of the Fantastic Sports Act does not agree with the proposed regulations

Bonacic, who led the push for the regulation of fantasy sports and online poker, immediately wrote a letter to the NYSGC.

In it, he says the law should cover products like Boom Fantasy:

When I wrote S.8153, I intended to provide enough flexibility to accommodate many different styles of interactive fantasy sports gameplay. The competition generated between established historical companies like DraftKings and FanDuel, and innovative startups like Boom Fantasy, will pave the way for a robust industry for all.

I fully support and endorse Boom Fantasy’s license and license application as a New York Fantasy Sports Operator. Their gameplay is exactly the kind of innovation I envisioned when drafting and supporting this legislation, and I encourage you to endorse their application. As a New York-based business that has grown significantly over the past year, I think it’s imperative that the business be licensed to operate in its home state.

Boom Fantasy recently raised $ 2 million, and exclusion from the New York market would obviously be a blow.

It is not known whether Bonacic’s plea will resonate with the Gaming Commission. Barring that and a period of public comment when changes can be suggested, NY Gaming could hold back innovation in the fantasy sports space.

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