Fantasy sports biz signs onto regulation bill
Thursday, Feb 25, 2016 - Posted by Rich Miller
* From Mac Strategies…
The Fantasy Sports Trade Association (FSTA), on behalf of its 300 members across the nation including DraftKings, FanDuel, and several Illinois-based operators, is announcing its support for HB4323 sponsored by State Rep. Mike Zalewski, D-Riverside. The bill will provide common sense regulation and consumer protections for the fantasy sports marketplace in Illinois.
“More than two million people in Illinois participate in fantasy sports contests, and they deserve clarity in the law and the right to play,” said Peter Schoenke, chairman of the FSTA. “It’s not just a cluster of larger tech companies who welcome this new regulation - more than a dozen fantasy sports related companies are based here in Illinois. These employers, along with dozens of national fantasy contest providers who have been offering games in Illinois for more than twenty years, would have the legal clarity they need to continue to operate in the state.”
Rep. Zalewski added, “As the popularity of fantasy sports grows, Illinois is part of an important national debate. These contests are not just about DraftKings and FanDuel or daily fantasy, but are really about a diverse industry with Illinois employers large and small providing an innovative form of entertainment. My colleagues and I have the unique opportunity to set a national standard on how to regulate these sites. We need this legislation to provide certainty and protection for the industry, its partners and the millions of Illinoisans who play these contests, and we need it in this spring session.”
Specifically, Rep. Zalewski’s bill offers these regulations and consumer protections:
Defines the category of fantasy sports, codifying them as legal games of skill in Illinois;
Establishes a minimum age of 18 for playing fantasy sports;
Restricts athletes from participating in fantasy contests involving games they participate in;
Ensures fantasy participants display responsible gaming;
Promotes standards for audits of the operators.
I’m assuming that, as usual, the devil of this proposal is gonna be in the details. No word yet on what the AG is planning to do, so stay tuned.
* ABC 7…
Illinois Attorney General Lisa Madigan issued an opinion in December saying the sites were illegal. The companies argued the opinion could destroy a “legitimate industry” allowed by state law.
New York and Texas have also issued opinions challenging the legality of the industry.
The Virginia General Assembly has passed legislation regulating the sites. Virginia is the first state in the country to establish a legal framework for fantasy sports. Democratic Gov. Terry McAuliffe can sign or veto the plan.
The sites have been banned in six states.
Thoughts?
…Adding… The press conference is here. Check out the pretty funny beatdown administered to a reporter by Stacie Stern of Head2Head Sports at the 18:45 mark.
- Wow - Thursday, Feb 25, 16 @ 4:02 pm:
Why is anyone surprised. ?!! They wrote the bill!!
- Anonymous - Thursday, Feb 25, 16 @ 4:10 pm:
I agree with Ms Stern, drafting Demarco Murray was just stupid on the reporter’s part
- Team Sleep - Thursday, Feb 25, 16 @ 4:14 pm:
Her comment was funny.
I waffle back-and-forth on this issue. Season-long fantasy leagues - which are all I play - are obviously much more difficult to predict. Daily leagues help curtail those “surprises”.
However, daily leagues are also much more subjected to inside info and algorithms. As posted before, Bill Simmons and his old Grantland team explain that really well.
I did think that the reactionary nature of the AG rulings across the country was a bit much - especially since some of these entities have been operating for a while.
- Been There - Thursday, Feb 25, 16 @ 4:19 pm:
Not sure why these were allowed for so long across the country. Basically it’s a pari-mutiual pool with players betting against each other. Just like horse racing which is regulated and taxed. Picking a horse or picking sport players is no different except it’s all “fantasy”. Not against except they should be regulated and taxed also.
- Ghost - Thursday, Feb 25, 16 @ 4:22 pm:
legalizing it is the right way to go, prohibitions never work anyway. have t read the bill but in theory this lets it be audited, TAXed and regulated. it shoukd set standards ffor cash on hand to cover pay outs etc just like other gaming regs.
- 47th Ward - Thursday, Feb 25, 16 @ 4:26 pm:
Stern’s answer applied to poker too, doesn’t it? Players with skill win more often. I think fantasy sports wagering should be as legal as on-line poker.
Having said that, there is an awful lot of luck involved too. Chance favors the prepared, but the element of chance cannot be so easily dismissed.
It’s still gambling as far as I’m concerned. There is still a high likelihood of fraud, so there ought to be some regulation of this if we legalize it.
- LizPhairTax - Thursday, Feb 25, 16 @ 4:32 pm:
The problem with these games is access to information, not any of the three things listed here. Want to see what the audit standards are.
Look forward to seeing the bill in full. Zalewski deserves the benefit of the doubt that he’s introducing something meaningful.
- tominchicago - Thursday, Feb 25, 16 @ 5:21 pm:
Put a tax on the companies handles attributable to Illinois. Just like they do with horse racing.
- wordslinger - Thursday, Feb 25, 16 @ 5:52 pm:
Some gamblers are better than others, but all gamblers are still engaged in a game of chance.
That’s why they set “odds.” There are no sure things.
Two Super Bowls ago, the smartest gamblers in the world wouldn’t have bet on Pete Carroll calling a play to throw the ball in the middle of the field at the one with seconds left. Not with the Beast in the backfield. But he did; that was the chance element.
- JackD - Thursday, Feb 25, 16 @ 7:15 pm:
Yep, regulate and tax ‘em.
- cannon649 - Thursday, Feb 25, 16 @ 8:52 pm:
Yes these will highly regulated, audited and TAXED.
New revenue stream.
- Anonymous - Friday, Feb 26, 16 @ 12:44 am:
While some players undoubtedly are more skilled than others, calling it a game of skill is farcical. Player A could have studied for hours and analyzed every player and still lose to Player B who basically picked a lineup of his favorite players 5 minutes before kickoff. That’s luck.
If I enter a spelling bee against those kids on ESPN I’d be beaten like a drum 99.9999999999999% of the time. Skill. If I entered a math contest against a professor at MIT I lose EVERY.SINGLE.TIME. Once again skill vs. luck. This whole argument is absurd. While I’m actually all for Fantasy. Allowing it while banning poker and sports betting is just so ridiculous.
- NoGifts - Friday, Feb 26, 16 @ 8:19 am:
Always be suspicious of “common sense regulation.”
- Mason born - Friday, Feb 26, 16 @ 9:24 am:
Ok good bil let’s make it a great bill and add an exception for home and social poker games. That’d be worth passing