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Speaker 1: Global business news twenty four hours a day. If Bloomberg

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Speaker 1: dot com, the Radio plus mobile app and on your radio.

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Speaker 1: This is a Bloomberg Business Flash from Bloomberg World Headquarters.

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Speaker 1: I'm Charlie Pelot. Forty two minutes to go. Ahead of

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Speaker 1: the close on a Monday, stocks are rallying and this

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Speaker 1: update is brought to you by Sector Spider e t

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Speaker 1: F S. Why by a single stock when you can

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Speaker 1: invest in the entire sector of visits sector sp t

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Speaker 1: r S dot com or call one six Sector e

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Speaker 1: t F SMP five hundred Indecks jumped the most in

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Speaker 1: four weeks after the latest polls showed the UK campaign

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Speaker 1: to remain in the European Union is gaining ground before

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Speaker 1: Thursday's referendum. The SMP up seventeen points to two thousand

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Speaker 1: eighty eight, a gain of nine tenths of one percent.

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Speaker 1: Nastack up fifty two a gain of one point one percent.

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Speaker 1: Down industrials hire by one percent. And now let's head

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Speaker 1: over to the first Word Breaking news desk for today's

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Speaker 1: afternoon call. Here is Bill Maloney. Good afternoon, Charlie. That's right.

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Speaker 1: Gained in US stocks today as those brakes, it fears

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Speaker 1: fade over. In Europe, the UK, France, Germany and Spain

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Speaker 1: all gained three percent or more back. In the USC,

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Speaker 1: sp cash traded back up of its fifty day moving average,

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Speaker 1: and the small cap six hundred climbs eleven points. The

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Speaker 1: US ten yield at one point six seven percent nine

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Speaker 1: out of tenness to be sectors are higher lit by

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Speaker 1: gains and energy industrials and consumer discretionary only utilities fell down,

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Speaker 1: Transports rise nineties six and as a biotech game thirty three,

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Speaker 1: and the vix is lower by ten percent down. Leaders

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Speaker 1: included Boeing, Intel, End, Goldman Sachs, and another news Walmart

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Speaker 1: to buy a five percent stake in JD dot Com

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Speaker 1: as part of a Chinese deal. Live from the First

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Speaker 1: Breaking News desk on Bill Maloney. Charlie, all right, thank

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Speaker 1: you very much, Bill Maloney, and you're live breaking news

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Speaker 1: over your Bloomberg type squawk sq You a w K

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Speaker 1: on your terminal. I'm Charlie Poddic. That's Bloomberg Business Flash.

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Speaker 1: You're listening to Taking Stock with Kathleen and pim Box

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Speaker 1: on Bloomberg Radio early on Saturday. Over the weekend, the

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Speaker 1: New York State Legislature they passed a well, they tried

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Speaker 1: to pass a bill that we've signed into law would

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Speaker 1: change the entire landscape of fantasy sports. New York State

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Speaker 1: Senate passing Senate Bill eight one five three to regulate

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Speaker 1: interactive Fantasy Sports contest. A companion bill had been previously

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Speaker 1: passed in the State Assembly. Here to tell us a

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Speaker 1: little bit more about it and the repercussions for the

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Speaker 1: fantasy sports business is Jay Koream. He is the founder

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Speaker 1: and owner of Dreamco Design. He is the author of

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Speaker 1: the book Daily Fantasy Sports, and is a member of

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Speaker 1: the Legislative Affairs Committee for the Fantasy Sports Trade Association. Jay,

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Speaker 1: thank you very much for being with us. Thanks for

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Speaker 1: having me. Now, there seems to be a bit of

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Speaker 1: a contradiction because, as I said, uh, this bill passed

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Speaker 1: by the Senate, and then there's the companion bill it

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Speaker 1: was previously passed by the State Assembly. Um seems to

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Speaker 1: contradict what the New York Attorney General Eric Schneiderman issued

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Speaker 1: that season desist order at last November. What exactly is

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Speaker 1: going on here in the world of fantasy sports business. Sure, so,

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Speaker 1: there's no doubt about it. It was definitely a rebuke

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Speaker 1: and one that was good for the industry and for

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Speaker 1: consumers on on the business side and with h you know,

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Speaker 1: consumers because they're going to have more options in terms

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Speaker 1: of how and where they play. So fantasy sports has

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Speaker 1: been around for decades. People have been playing in season

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Speaker 1: long leagues and whatnot. Daily fantasy sports within the last

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Speaker 1: twenty four months has ramped up as an industry. It's

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Speaker 1: quite large. There are fifty seven million people in North

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Speaker 1: America that play fantasy sports in some capacity. And daily

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Speaker 1: fantasy sports really caught on last year. A lot of

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Speaker 1: people recall seeing ads from FANDUL and Draftings. So New

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Speaker 1: York Attorney General is really the one that thrust it

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Speaker 1: into the spot light as having a negative opinion of

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Speaker 1: the industry and considering it nothing more than a form

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Speaker 1: of gambling. So on the federal end, we have what's

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Speaker 1: called UIJAH. It's essentially a car about so that operators

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Speaker 1: like vandel and draftings could exist. Fantasy sports are looked

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Speaker 1: at as games of skill. However, individual states they can

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Speaker 1: choose what is gambling and what's not. Uh, and the

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Speaker 1: Attorney General in New York thought that it was uh,

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Speaker 1: you know, gambling and it was not a skill based

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Speaker 1: game and every state they determined what the word gambling

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Speaker 1: means in their states. So that's that's the interesting side

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Speaker 1: of it. So DDE. This is so interesting though that

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Speaker 1: this bill passed by the New York State Senate to

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Speaker 1: regulate interactive fantasy sports contest a companion bill the previously

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Speaker 1: passed in the state Assembly. But this is a big deal. Uh.

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Speaker 1: They started debating Friday night, they went into the wee

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Speaker 1: hours of the morning. They didn't vote till to a

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Speaker 1: m Uh, this passes. What has stepped up the urgency

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Speaker 1: And to what extent is this a win for Eric Schneiderman,

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Speaker 1: next Attorney General? How much is it a win for

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Speaker 1: the big fantasy sports players. So the fight in New

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Speaker 1: York has been going on since the Attorney General came

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Speaker 1: out and said that this is nothing more than gambling

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Speaker 1: and we need to do everything we can to shut

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Speaker 1: down Vanduel, Draft Kings and any other operator. So it's

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Speaker 1: not a new thing. However, they did, you know, the state,

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Speaker 1: the state legislator did want to get it done prior

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Speaker 1: to the session ending so that we didn't criminalize people

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Speaker 1: that are playing fantasy sports for money. And there was

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Speaker 1: a similar issue unfolding in Illinois as well. So it

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Speaker 1: even though it had the has the takeaway of this

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Speaker 1: just came up, just happened. This battle has been going

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Speaker 1: on for quite a while. Uh and there are three

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Speaker 1: core principles at the Fantasy Sports Trade Association and Vanduel

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Speaker 1: DraftKings as well, we're really looking for and trying to

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Speaker 1: make sure we worked end roads within the state to

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Speaker 1: have happened. We want to make sure that fantasy sports

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Speaker 1: are considered a game of skill. We're fine with basic

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Speaker 1: consumer protections, but we also needed to make sure that

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Speaker 1: there was a fee structure put in place that wasn't

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Speaker 1: going to, you know, be the death sentence for a

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Speaker 1: lot of small businesses or create a duopoly. So there

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Speaker 1: were a lot of moving parts behind the scenes that

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Speaker 1: were unfolding over the last few weeks to get the

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Speaker 1: bill where it is today. Can you give us an

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Speaker 1: idea of how much, for example, draft kings brought in

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Speaker 1: from user fees because that seems to be the big

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Speaker 1: money maker there. Yeah. So the way that these operators,

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Speaker 1: these fantasy sport operators make money is they can they

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Speaker 1: keep a percentage. So let's say there's a ten man

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Speaker 1: uh ten dollar contest. It's a hundred dollars total, Well,

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Speaker 1: ninety would be part of the prize pool, and they

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Speaker 1: would keep ten dollars, you know, collectively. What the individual

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Speaker 1: companies are doing, it varies what you're going to hear

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Speaker 1: from FANDUL or Draftings. However, they have taken hundreds of

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Speaker 1: millions of dollars over the course of time and deposits.

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Speaker 1: So it certainly is you know, substantial. Uh, and you know,

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Speaker 1: to some extent, it's not a surprise the government wants

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Speaker 1: to get involved because it thinks it can it can

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Speaker 1: cut into I don't have the specifics in front of me,

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Speaker 1: but I do actually have a chapter dedicated to the

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Speaker 1: financials in the book. Just really quick, think about ten

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Speaker 1: seconds left. How many people were betting on the Big

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Speaker 1: Game last night? Uh? The sports betting and fantasy sports

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Speaker 1: very different. Yeah, there are two very different things. They

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Speaker 1: shouldn't have been doing anything like that when it comes

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Speaker 1: to fantasy sports. Both vandel and Draftings definitely have interest

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Speaker 1: in going public. So we'll say, Jakorea, thank you so much.

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Speaker 1: Founder and owner of Dream Code Design, he's also the

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Speaker 1: author of Daily Fantasy Sports and a member of the

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Speaker 1: Legislative Affairs Committee for the Fantasy Sports Trade Association on

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Speaker 1: Kathy Hayes along with pim Fox, taking Stock, brig Radio

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Speaker 1: coming up on taking stock. Facebook has its annual shareholders

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Speaker 1: meeting and Peter til He's gonna stay on the board.

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Speaker 1: We're gonna find out more about the future of Facebook

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Speaker 1: next