For Democrat New Jersey Congressman Frank Pallone, the slew of ads he saw for daily fantasy sports sites at the start of the NFL season has raised a question.
Namely, isn’t this just a form of gambling? Now he wants a House committee to hold hearings on the status of daily fantasy sports in relation to sports betting and also the fantasy industry’s ties to professional sports leagues.
“Anyone who watched a game this weekend was inundated by commercials for fantasy sports websites, and it’s only the first week of the NFL season,” Pallone said in a letter making the request to the House Energy and Commerce Committee. “These sites are enormously popular, arguably central to the fans’ experience, and professional leagues are seeing the enormous profits as a result. Despite how mainstream these sites have become, the legal landscape governing these activities remains murky and should be reviewed.”
“Fans are currently allowed to risk money on the performance of an individual player,” Pallone also said. “How is that different than wagering money on the outcome of a game?”
Pallone is a ranking member of the committee.
According to New Jersey radio station 101.5, Pallone specifically mentions the sites DraftKings and FanDuel as having relationships with professional leagues.
While federal law bans sports betting in most states through the Unlawful Internet Gambling Enforcement Act, the ban specifically exempts fantasy sports games. However, PASPA was passed when the more traditional season-long fantasy model was used and not the current daily games.
Pallone said he’s concerned that the loophole has “blurred the line” between gambling and fantasy sports.
New Jersey, of course, has been trying to implement traditional sports betting and Pallone said he’s an advocate of legalized and regulated pro sports betting in New Jersey, according to the radio station.
