New York Fantasy Sports Legislation

[Greg Ambrosius]

Last year in the NFBC Main Event, 57 of the 450 teams were owned by New York residents. That's 12.66% of the total teams. According to New York law, that would be an average cost of $50 per team in taxes.

In the Online Championship, we had just under 170 teams owned by New York residents, about an 11% ownership total. According to New York law, that would be an average cost of $10.50 per team in taxes.

I'm sure the other national contests are similar. This is even before figuring in our live event costs, which will surely be discussed with our New York regulator. It's important to show them the differences between our games and the DFS games.

I guess the bottom line is that if other states don't do this we can make it work for the national contests. I'm not sure the private leagues would be much different because 15% of the net if won by a New York resident shouldn't be outrageous. But obviously when you have 5% margins any tax makes it tougher to keep prizes at the same levels, but we'll see.

I have an idea on how we'd handle this state-by-state and I think it's doable. But let's see if any other states follow New York's precedence and then let's see what the regulators say to us season-long game operators. We've got a lot of work ahead of us, but hopefully things are doable.

[King of Queens]

Simple solution: New York residents win all the leagues.

Problem solved!

[Greg Ambrosius]

I will talk about the New York bill tonight on STATS Fantasy Advantage on SiriusXM Fantasy Sports Radio at 10 pm ET. I've even invited Dave Gerczak of the FFPC to come on at 10:15 pm ET to give his feedback on this bill and other bills that are affecting small businesses. It's important to show solidarity among season-long game operators at this time and we certainly look forward to talking with Dave and other game operators to get on the same page when it comes to all of these state bills. I look forward to the conversation tonight.

Listen in. Call in. We welcome your input. Thanks all and enjoy.

[Greg Ambrosius]

For those folks living in Pennsylvania be aware of a bill that was introduced and passed quickly last night. This is a DFS bill that also has legalized online gambling and it was rushed through last night. I have no idea what the final DFS fees are or even if they include season-long, but it definitely looks like a revenue bill for a cash-strapped state.

Here's the update from Legal Sports Report:

http://www.onlinepokerreport.com/21249/ ... ing-bills/

On Monday, a Senate bill was introduced in Pennsylvania that had a scaled renewal fee and an exemption on fees for season long. I don't know if this bill has that or not, but it would be a huge win if season-long was exempted. Let's see what the final bill says when it becomes available to the public.

[Gekko]

Greg - my wife co-sponsored the PA bill

[Greg Ambrosius]

Greg - my wife co-sponsored the PA bill

Good to hear and congrats. Does it have a season-long exemption?

[Gekko]

Greg - I'm joking about the mrs. She would LOVE if I stopped playing. LOVE it!

As for the bill, at first glance it looks the same as I posted on The previous page of this thread. $50,000 for a fantasy license or 7.5% of your adjusted fantasy revenue from last year. Definition is on the previous page of this thread

[Gekko]

It's 302 pages: http://www.legis.state.pa.us/CFDOCS/Leg ... 50&pn=3607

Search by "license fee"

[swampass]

For those folks living in Pennsylvania be aware of a bill that was introduced and passed quickly last night. This is a DFS bill that also has legalized online gambling and it was rushed through last night. I have no idea what the final DFS fees are or even if they include season-long, but it definitely looks like a revenue bill for a cash-strapped state.

We always get the best governing when its done super fast and when nobody is looking. Has there been 1 piece of legislation that was proposed and passed in the dead of night that was good?

We have Boeing selling 100 planes the largest sponsor of terrorism in the world but lets harp on these darn fantasy players. this is an absolute joke. Anybody who gets behind this legislation on fantasy sports with so much ailing this country and world should immediately be dismissed from the job.

[Greg Ambrosius]

We sure hope that Pennsylvania doesn't Brexit from the fantasy sports space, so we're asking all Pennsylvania customers to contact their legislators over the recent DFS bill that was passed this week. We still don't have many details on this bill, but the fear is that there are heavy licensing fees and revenue taxes for all pay-to-play fantasy companies, including season-long. Please reach out to your state legislator to make your feelings known that the state at the very least should exempt or alter fees for season-long and small business operators.

Here's the link where you can find your state legislator:

http://openstates.org/find_your_legislator/

The bill is HB2150 (written by Dunbar/Youngblood). Let them know your feelings on the bill and how Pennsylvania could be exempted by small business operators if the fees aren't changed. All of the high-stakes games are asking their customers to help out in this manner and hopefully the power of the people will change the wording of the bill. It's worth it to try.

Thanks all. California will likely discuss their DFS next Tuesday. California residents can use the same link above and reach out to their state representatives. After what New York just passed, expect California to have similar legislation. Again, if too many states start taxing season-long game operators, it's going to be tough to remain in every state without surcharges and lower prize payouts. Hopefully these next two states make the right decisions.

[Gekko]

ya, season long looks to be included. and they don't give a shit about season long.

sorry mazara, i mean Eric Heberlig, u may be dropped from the nfbc next year

[robby1]

Gekko, maybe the DFS behemoths will come to Greg and Tom with an offer for the NFBC franchise that they cannot refuse.

Never hate your enemies. It affects your judgment.

[Gekko]

i dont think DFS companies give a shit about season long companies like the nfbc. because of them (DFS), get ready to bend over and accept lower payback %'s or not even be able to participate in the nfbc at all, becuase they are coming in DRY.

[Greg Ambrosius]

i dont think DFS companies give a shit about season long companies like the nfbc. because of them (DFS), get ready to bend over and accept lower payback %'s or not even be able to participate in the nfbc at all, becuase they are coming in DRY.

Please don't speak on our behalf. We will make these decisions when all the information is available.

You don't work for the Postal Service, do you? You sound like a person who is going to go postal on the world if anyone asks you for a book of stamps. Slow down and enjoy life. The apocalypse isn't upon us yet.

It's a stupid world right now filled with stupid politicians. But that's no different from any year before us. We will all survive and figure this mess out. As Aaron Rodgers advised: R-E-L-A-X.

[Gekko]

i dont think DFS companies give a shit about season long companies like the nfbc. because of them (DFS), get ready to bend over and accept lower payback %'s or not even be able to participate in the nfbc at all, becuase they are coming in DRY.

Please don't speak on our behalf. We will make these decisions when all the information is available.

You don't work for the Postal Service, do you? You sound like a person who is going to go postal on the world if anyone asks you for a book of stamps. Slow down and enjoy life. The apocalypse isn't upon us yet.

It's a stupid world right now filled with stupid politicians. But that's no different from any year before us. We will all survive and figure this mess out. As Aaron Rodgers advised: R-E-L-A-X.

Greg,

I live an incredibly balanced life. Today, this morning I took the family to SkyZone (the world’s first indoor trampoline park) where I was the ONLY Dad participating with their kids. And just got back from taking family to see Finding Dory.

Current events I write about on this board are just that MB fodder. And yes, I do believe we are heading for some bad times ahead (think Depression from the late 20's early 30's), esp if you aren't prepared. I'd like to think I (and my immediate family) is indeed well prepared to weather the on-coming storm.

As for the nfbc/nffc, i sure hope prize payouts will remain untouched and i sure hope you continue to operate in PA. Success at life, like in fantasy baseball, is a function of being able to predict/influence the future. when YOU say, "if too many states start taxing season-long game operators, it's going to be tough to remain in every state without surcharges and lower prize payouts", you aren't painting a positive picture yourself. what are participants supposed to think???

[TRAIN]

[

Greg,

I live an incredibly balanced life. Today, this morning I took the family to SkyZone (the world’s first indoor trampoline park) where I was the ONLY Dad participating with their kids. And just got back from taking family to see Finding Dory.

Current events I write about on this board are just that MB fodder. And yes, I do believe we are heading for some bad times ahead (think Depression from the late 20's early 30's), esp if you aren't prepared. I'd like to think I (and my immediate family) is indeed well prepared to weather the on-coming storm.

As for the nfbc/nffc, i sure hope prize payouts will remain untouched and i sure hope you continue to operate in PA. Success at life, like in fantasy baseball, is a function of being able to predict/influence the future. when YOU say, "if too many states start taxing season-long game operators, it's going to be tough to remain in every state without surcharges and lower prize payouts", you aren't painting a positive picture yourself. what are participants supposed to think???

Great post.

[robby1]

A man who doesn't spend time with his family can never be a real man. Don Corleone

[Gekko]

fogot to add, tomorrow morning i'm talking the family to Hersheypark

[Greg Ambrosius]

fogot to add, tomorrow morning i'm talking the family to Hersheypark

Dad of the Year!!

I think when you say "get ready to bend over and accept lower payback %'s or not even be able to participate in the nfbc at all, becuase they are coming in DRY" you are extrapolating what I said in a Trump-ian way. That's the best way I can describe it.

We will see what each state does. If we want to stay in New York, Pennsylvania, California and other states that charge season-long game operators we will have to figure out a way to make it work. It might be a combination of state surcharges and/or lower prize payouts. Who knows at this point. We can absorb one or two state taxes, but if they add up and it's coming from a handful of key states then those state residents may have to help with the charge. At the end of the day, we will have to decide if we're going forward with lower profits, lower payouts or both. I can't even tell you what will happen in 2017 until we get past these last couple of states. Then in 2017 I expect 30+ more states to decide one way or another.

Time will tell what happens, but your description was not what I had originally said. And my hope is that when we start to talk with these state regulators we'll get some leeway on the charges. It's bizarre that we've been running in these states legally under UIEGA and suddenly we're being taxed exactly the same as DFS. It doesn't make sense to me.

[cfolson]

We will see what each state does. If we want to stay in New York, Pennsylvania, California and other states that charge season-long game operators we will have to figure out a way to make it work. It might be a combination of state surcharges and/or lower prize payouts. Who knows at this point. We can absorb one or two state taxes, but if they add up and it's coming from a handful of key states then those state residents may have to help with the charge. At the end of the day, we will have to decide if we're going forward with lower profits, lower payouts or both. I can't even tell you what will happen in 2017 until we get past these last couple of states. Then in 2017 I expect 30+ more states to decide one way or another.

In my opinion, state surcharges are the way to go. In some states, citizens have elected representatives that have gone one way, in others, a different way. Surcharges serve two purposes. First, they don't punish states that have elected better representatives. Second, they provide an incentive to the use of partners in states with better regulations and, thus, lower costs overall.