Two of the largest states in the nation have differing views on daily fantasy sports (DFS).
New York Assemblyman Gary Pretlow says DFS and online poker can be regulated as permissible gambling, but skeptics are concerned it could prove harmful.
Pretlow is sponsor of an Assembly bill legalizing paid Daily Fantasy Sports contests in New York.
He faces opposition from the New York Gaming Association, which says the state’s brick-and-mortar casinos would suffer if daily fantasy sports were legalized without including the state’s casinos.
The gaming association says FanDuel and DraftKings haven’t made the kinds of investments in the state’s economy as its casinos have, and cutting them out of the DFS would be bad for the state and its casinos.
Also concerned is the Poker Players Alliance, which wants the New York Senate to quickly approve Senate Bill 5302, which would license and regulate online poker in the state.
“Numerous discussions and hearings in the Assembly and the Senate have provided convincing evidence that licensing and regulating Internet poker in the state is in the best interest of consumers and would also generate significant revenue and jobs in New York,” Poker Players Alliance Executive Director John Pappas said.
The New York legislature is also considering the regulation of Daily Fantasy Sports (DFS), but the Poker Players Alliance is urging lawmakers not to prioritize DFS over Internet poker players.
“The regulations of DFS and internet poker can happen simultaneously, and there is no need to wait to adopt strict regulations and safeguards for both,” Pappas said.
Pappas said three other states are already are regulating legal online poker, and New York lawmakers should act quickly to give their constituents the same right.
Poker Players Alliance is running digital advertisements in Politico New York to encourage state lawmakers to regulate and legalize iPoker and DFS this year.
Poker Players Alliance also launched a New York iPoker Advocacy Page so that New Yorkers can contact state lawmakers via Twitter and email.
The Poker Players Alliance is a nonprofit organization comprised of more than a million online- and offline-poker players and enthusiasts from around the United States to promote the game and protect poker players’ rights.
In Illinois, the legislature adjourned May 31 without attempting to pass H3655, which would have legalized and regulated daily fantasy sports, by clarifying existing state law. The Senate previously passed the bill in a 32-22 vote.
With the failure of the legislation, the focus returns to legal challenges by DraftKings and FanDuel to State Attorney General Lisa Madigan’s opinion that DFS sports are illegal in Illinois. A trial date is set for June 27. Draft Kings and FanDuel have reached settlements with some state attorneys general in similar lawsuits.
One of the bill’s sponsors, state Rep. Michael Zalewski, said, “I think this is good public policy, and I think we are making an ill-advised decision if we don’t address this as a General Assembly. That being said, I think the world of my colleagues and I think the world of the work that they do every day. And if they come to me, as they have, and say ‘We’re just not there yet,’ I have to respect that as well. So what I am going to do is, for the moment, not pursue a vote. I’m going to continue to have individual conversations with my colleagues. I am going to explain to them why this is good public policy. And I am going to live to fight another day.”
The state’s casino lobby expressed its opposition to the bill, which had become engulfed in allegations of vote-buying. State Rep. Rita Mayfield said she had seen an email from a FanDuel and DraftKings lobbyist suggesting he could win support from House Legislative Black Caucus members in return for contributions to their foundations. “The email basically alleged that in exchange for considerations, donations, that he could guarantee votes. That’s illegal,” Mayfield said, but she declined to say where the email originated. “This became a distraction to an unhealthy degree,” Zalewski said.
FanDuel and DraftKings spokesman Jeremy Kudon said, “We categorically reject the implication that DraftKings or FanDuel would partake in such behavior. We do not condone this type of activity. It’s simply not how we do business, here or anywhere in the country.” According to the Fantasy Trade Association about 2 million people in Illinois participate in the games, making the state the third-largest market for the contests.
Since the bill was not defeated in a vote, it could come up during a summer session or a veto session later. Zalewski noted, “My expectation is that we will continue to have to deal with this because the companies are under no legal obligation to stop operating in Illinois. “
