Two more states are investigating ways to legalize, regulate and tax fantasy sports.
Iowa state Rep. Guy Vander Linden plans to introduce a measure that would legalize fantasy sports betting in his state. The Iowa Racing and Gaming Commission would oversee licensing, investigating violations and levying fines and suspensions. Vander Linden said operators would be taxed at 7.5 percent, which would generate $578,000 annually for the state’s infrastructure fund, according to the Iowa Fiscal Services Agency. The measure also would ban wagering on high school and college athletics and would require players to be at least age 21.
The proposed measure is “almost identical” to a bill proposed in 2015, Vander Linden said. He added it already received support from FanDuel and DraftKings.
Vander Linden noted last year a key obstacle was overcome when legislators determined–and operators agreed—to consider and regulate fantasy sports wagering as gambling instead of a game of skill. “We’ve been playing with this for a number of years. We pretty much now all agree that we’re going to treat it as gambling, first of all. We’re going to regulate it through the Iowa Racing and Gaming Commission. We’re going to tax it. People get out of line, then we will do away with it. We have gambling in Iowa. It’s just another form.”
State Senator Jeff Danielson added, “I’m for freedom and economic opportunity and I believe fantasy sports are something that Iowans have come to accept. They do it. Most were unaware that it is not legal. So, I’m in favor of legalizing it. I think operators have been willing, as I have, to compromise as long as the essence of the game is still available. I support the bill.” He noted, “Fantasy sports wagering is clearly an area where the state of Iowa can authorize it and legally do it and we will enjoy economic growth and the ability of like-minded Iowans to get together and participate.”
According to official figures, 57.4 million people played fantasy sports in the U.S. and Canada in 2015, and wagered more than $1 billion. Currently Iowa is one of 10 states actively considering legislation to legalize it.
In Texas, lawmakers are seriously contemplating legalizing and regulating daily fantasy sports (DFS) in Texas. H 1457, sponsored by Rep. Richard Peña Raymond, would carry out his promise from last year to introduce the legislation. He considers the game a game of chance, not a form of gambling.
Raymond was quoted by Texas Fantasy Sports Alliance, who quoted him as saying, “HB-1457 will clarify a confusing and ambiguous law and affirm that fantasy sports are legal in Texas. The government should not be limiting the freedom of Texans to participate in fantasy sports contests, which are clearly a game of skill, not chance.”
Another sponsor, Rep. John Kuempel told the Star-Telegram, “I am proud to support legislation that protects Texans’ right to participate in fantasy sports contests, while preventing unnecessary government involvement in Texans personal lives and pocketbooks.”
If the legislature doesn’t act, Texas Attorney General Ken Paxton may start to prosecute the games. He drove FanDuel out of the state when he declared that DFS is illegal gambling. DraftKings, the other major provider, has taken the AG to court.
Currently eight states are considering legislation about the games while eight states legalized the practice last year.
The bill being considered would define DFS as a game of skill and add consumer protections while preventing minors from playing. It would not require any licensing or fees.
The bill would require that both houses of the legislature approve it.
And in Wisconsin, state Rep. Tyler Vorpagel announced plans to introduce legislation there that would also classify DFS as a game of skill. Vorpagel introduced a previous bill last year that sought to have DFS sites register with the state and pay a $150,000 licensing fee with a $30,000 annual renewal fee. That bill, however, never made it out of committee.
