Small fantasy sports owners oppose proposed DraftKings, FanDuel legislation

Small fantasy sports owners oppose proposed DraftKings, FanDuel legislation

The following article can be found in its original form at this link from the Albany Business Review:

Albany Business Review: Marie J. French, March 30, 2016

FanDuel and DraftKings aren't the only fantasy sports games in town.

The Small Business Fantasy Sports Association wants to see proposed language of a bill to see  proposed language of a bill to regulate all fantasy sports companies sponsored by Sen. John Bonacic modified to lower the taxes and license fee of $500,000.

That legislation is supported by FanDuel and DraftKings, who are pushing to legalize and regulate daily fantasy sports in the state following a partial settlement with Attorney General Eric Schneiderman. Schneiderman's position is that daily fantasy sports are a game of chance and thus barred as gambling under New York's rules.

The group, which includes about 35 businesses across the country, organized over concern about legislation passed in Indiana and Virginia. License fees there of $50,000 have shut down operations of many small fantasy sports companies in those states, said Alex Kaganovsky, managing partner of fantasy football website FFPC.

"New York is the battleground for the small businesses of fantasy sports and it's crucial we pass legislation that levels the playing field for all fantasy sports business," Kaganovsky said.

Without recognizing small businesses involved in fantasy sports, the current proposal will create a duopoly with FanDuel and DraftKings, he said.

Kaganovsky's company is based in New York City and has three full-time employees and about a dozen seasonal part-time workers.

Steven Brubaker, a consultant hired by the new trade association, said they'd met with Bonacic's staff and Assemblyman Gary Pretlow, who is also working on the issue of daily fantasy sports. He said those conversations were productive and that he is optimistic any final regulations will reflect the concerns of smaller fantasy sports companies.

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