House Hearing on Legality of Daily Fantasy Sports, Online Gambling Next Month
David Purdum of ESPN reported Thursday that the House of Representatives’ Subcommittee on Commerce, Manufacturing and Trade will hold a hearing on Wednesday, May 11 to consider the legal status of Daily Fantasy Sports, online gambling and sports betting.
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The hearing was requested in September by Rep. Frank Pallone, D-N.J in response to a barrage of television and radio advertisements for DFS sites DraftKings and FanDuel hit the airwaves. Since that time, a number of state Attorney Generals have determined Daily Fantasy Sports to be a form of sports betting. The NFL and other professional sports leagues entered into partnership arrangements with DraftKings and FanDuel while taking legal action in preventing New Jersey from offering sports wagering at its casinos and race tracks.
The NBA has equity in FanDuel, and MLB and the NHL have equity in DraftKings. The NFL does not have an equity deal at the league level, but 28 of 32 teams have sponsorship or marketing deals with one of the companies.
The hearing also will focus on actions that states have taken regarding daily fantasy and whether there is a need for federal involvement, according to the source. Nine state attorneys general have said that daily fantasy sports violate their states' gambling laws. Last week, Alabama Attorney General Luther Strange issued cease-and-desist orders to DraftKings and FanDuel, giving the companies until May 1 to stop offering paid contests in the state. The sites also are in legal battles with New York, Illinois and Texas.
- Aaron Goldstein, Gambling911.com
