New York State Gaming Commission Readies for Sportsbook Operations in the Empire State
A merger between two agencies, the New York State Racing and Wagering Board and the New York Lottery necessitated a single agency to oversee casino and charitable gaming operations, horse racing, plus the state’s lottery games. State Chapter Law 60 was approved and established the New York State Gaming Commission (NYSGC) in 2012.
Currently, the NYSGC is composed of a five member commission with an Executive Director. The director is primarily in charge of the New York Lottery operations. Here we’ll discuss the basic responsibilities of the NYSGC, plus what part the agency plays in daily fantasy sports (DFS), and what role they will have in sportsbook operations.
The NYSGC is an agency responsible with gaming oversight that is part of the New York State Executive Department. In other words, it is an administrative department that is a part of the governor’s office.
There are monthly meetings held by the commission to address any number of questions and legislative proposals for casino games, lotteries and now sports betting. The NYSGC was instrumental in creating a structure so New York residents could legally participate in DFS contests as well.
Each casino or gaming entity must report all revenues. These reports are available on the NYSGC website. All rules and statutes falling under the NYSGC’s jurisdiction are also posted. New proposals for pending legislation are available for public view.
The NYSGC strives to guarantee that all games of chance conducted with the state of New York are fair with credible accounting and oversight. They are also entrusted with formulating procedures and policies to insure the state’s gaming operations can compete in an increasingly competitive gaming market.
There is also a process for the procurement under operations within the oversight of the NYSGC. These opportunities can be applied for on the agency’s website and fall under Article 11 of the New York State Finance Law.
These include proposals for contracts to supply a gaming service, including casino operations. This will most likely be the path prospective New York sportsbook operators will be required to follow. License fees and gaming taxes are also collected through the NYSGC.
Interactive Fantasy Sports
Most states have permitted daily fantasy sports contests under existing legislation. New York’s governor signed a law in 2016 that officially made DFS contests legal in the state. The Interactive Fantasy Sports legislation requires each entity to register with the state.
The NYSGC established a series of rules and guidelines to help guarantee player security against fraud and abuse. There are stiff penalties for allowing underage players, plus safeguards that mandate protection of funds held in accounts.
Each DFS operator must disclose a number of important details about financial transactions, privacy disclosure, plus extensive information for each contest posted. A dedicated block of information also must be clearly posted, information and referrals which address compulsive play.
The NYSGC Sports Betting
Sports betting is going to be one type of gambling in New York, where the NYSGC plays a vital role. Since they have been the immediate governing agency licensing and monitoring the state’s physical casino operations, clearly this new responsibility is logical.
This importance was emphasized by the new sports betting rules released early this month. These guidelines establish the groundwork for each of New York’s tribal casino locations, plus four in the upstate region, to open sportsbooks.
Most believe there is an unmentioned target date of later this summer for the first legal bet being accepted in New York. A timeline that could prove lucrative to the state revenue budget would be just before the kickoff of the 2019 NFL season.
The 2019 New York State Executive Budget for the NYSGC was $360 million. This was nearly a nine-percent increase in the wake of added responsibilities expected in relation to sportsbook operations. There was a small drop in appropriated funds earmarked for Interactive Fantasy Sports.
The $289,000 reduction is both indication of smooth running operations, and an indication that the NYSGC will divert more attention to sportsbook legislation and guidelines. Currently, there is no set appropriation for sportsbook operations. Initial funding is expected to come from the $6 million administrative general fund.
NYSGC Help and Support
The agency has various departments to address specific gaming questions and address problems. There is a unique contact for media inquiries as well. The main offices are located in Schenectady, New York.
All types of gaming questions and inquiries are processed through this main office via direct phone contact or by mail. There is a complete list of all licensed gaming facilities operating in New York, with direct contact information for each of these facilities.
Under the Freedom of Information Law (FOIL), all records pertaining to gaming or lottery operations licensed in the state are available for public inspection. Upon a formal written request, anyone can view public records at the NYSGC main office during business days between 10am and 4pm.
While young in relation to many gaming commissions across the United States, the New York State Gaming Commission has been entrusted with many important responsibilities. Like most gaming agencies, they oversee tribal and private casino faculties and any state lottery games. The NYSGC has also laid a framework that other states may use as a model.
They have created a set of rules and guidelines to govern all forms of daily fantasy sports, plus are writing and implementing the rules that will govern sports betting. The importance of the NYSGC to date and going forward cannot be understated.