NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A8587
SPONSOR: Murray TITLE OF BILL:
CONCURRENT RESOLUTION OF THE SENATE AND ASSEMBLY proposing an amendment
to section 9 of article 1 of the constitution, in relation to authoriz-
ing fantasy sports wagering on professional sports
SUMMARY OF PROVISIONS
This bill would amend subdivision 1 of section 9 of article 1 of the
State Constitution to permit fantasy sports wagering, nothwithstanding
applicable federal laws related to fantasy sports wagering.
JUSTIFICATION
"Daily Fantasy Sports" allow participants to assemble a fantasy team
made up of selected athletes from real-world sports teams. Participants
pay an entry fee for the contest, and based upon the outcome, are then
eligible for a prize.
"Daily Fantasy Sports," such as those made popular by FanDuel and
DraftKings, have recently come under scrutiny in New York State. This
bill would create an exemption for such daily fantasy sports in the
State constitution. Other related legislation has been introduced clas-
sifying the game as a contest of skill rather than a contest of chance.
As such, daily fantasy sports are more properly equated to stock or
option trading on the U.S. markets, than they are gambling since the
contests involve skill as the dominating element of success. Such skill
is based on, but not limited to, statistical analysis and relevant know-
ledge the real world sporting contest. Chance in such a fantasy or
simulation sports games or contests is limited to factors such as inju-
ries, weather or the vicissitudes of sporting events in general, but
such chance is not a material element of the fantasy or simulation
sports game or contest. In short, the success of a fantasy sports team
depends on the participant's skill in selecting players for his or her
team.
Moreover, in daily fantasy sports, the prize guaranteed to be awarded is
known to participants before the start of the fantasy sporting event,
and the prize does not depend on the number of entrants. Facilitators
of daily fantasy sports, such as DraftKings and FanDuel, do not compete
for prizes and are indifferent to who wins, unlike the house advantage
in a traditional contest of chance.
LEGISLATIVE HISTORY:
This is a new bill.
FISCAL IMPLICATIONS
None.
EFFECTIVE DATE
The amendment will be referred to the first regular legislative session
convening after the next succeeding general election of members of the
assembly, and, in conformity with section 1 of article 19 of the consti-
tution, be published for three months previous to the time of such
election
STATE OF NEW YORK
________________________________________________________________________
8587
2015-2016 Regular Sessions
IN ASSEMBLY
December 2, 2015
___________
Introduced by M. of A. MURRAY -- read once and referred to the Committee
on Racing and Wagering
CONCURRENT RESOLUTION OF THE SENATE AND ASSEMBLY
proposing an amendment to section 9 of article 1 of the constitution, in
relation to authorizing fantasy sports wagering on professional sports
1 Section 1. Resolved (if the Senate concur), That subdivision 1 of
2 section 9 of article 1 of the constitution be amended to read as
3 follows:
4 1. No law shall be passed abridging the rights of the people peaceably
5 to assemble and to petition the government, or any department thereof;
6 nor shall any divorce be granted otherwise than by due judicial
7 proceedings; except as hereinafter provided, no lottery or the sale of
8 lottery tickets, pool-selling, book-making, or any other kind of gambl-
9 ing, except lotteries operated by the state and the sale of lottery
10 tickets in connection therewith as may be authorized and prescribed by
11 the legislature, the net proceeds of which shall be applied exclusively
12 to or in aid or support of education in this state as the legislature
13 may prescribe, except pari-mutuel betting on horse races as may be
14 prescribed by the legislature and from which the state shall derive a
15 reasonable revenue for the support of government, and except casino
16 gambling at no more than seven facilities as authorized and prescribed
17 by the legislature and except for fantasy sports wagering on profes-
18 sional sports which may be authorized by the legislature, in a manner
19 prescribed by the legislature for offering and conducting gaming and
20 wagering, provided however, that such authorizations shall be preceded
21 by the elimination of the federal ban on professional sports wagering,
22 shall hereafter be authorized or allowed within this state; and the
23 legislature shall pass appropriate laws to prevent offenses against any
24 of the provisions of this section.
25 § 2. Resolved (if the Senate concur), That the foregoing amendment be
26 referred to the first regular legislative session convening after the
27 next succeeding general election of members of the assembly, and, in
28 conformity with section 1 of article 19 of the constitution, be
29 published for 3 months previous to the time of such election.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD89108-01-5
