NY legalizes controversial daily fantasy sports sites

ALBANY, N.Y. - Gov. Andrew Cuomo has signed a new law to allow the resumption of daily fantasy sports in New York.

The measure calls the popular online contests a "game of skill." That legal definition resolves the central argument in a lawsuit brought against the country's two top fantasy sports companies by the state attorney general. He had likened the online matches to illegal gambling operations based on chance.

In March, New York-based FanDuel and Boston-based DraftKings agreed to stop operations in New York pending the passage of a law that would resolve the ambiguity. But under the stipulation with Attorney General Eric Schneiderman, they couldn't start operating again until Cuomo signed the bill into law.

"Daily fantasy sports have proven to be popular in New York, but until now have operated with no supervision and no protections for players," Cuomo said in a statement.

In the fantasy sports games, contestants assemble their rosters of athletes in a given sport and use the real-life performance statistics of those athletes to determine the online contest's winner. Contestants pay fees to enter the contest and, if successful in performing against their opponent, win prizes.

Among the consumer protections in the new law cited that were cited by the Cuomo statement are introductory procedures to new players and identifications of highly experienced players, prohibiting the participation of minors and protecting players' funds upon deposit.

Schneiderman said in a statement his office "will enforce and defend the new law" and that "our consumer fraud claims for past misconduct by DraftKings and FanDuel will continue to move forward."

This is a developing story ...

Note: CBSNews.com parent CBS Corp. owns a stake of less than 1% in FanDuel.