Several more states have either ruled on or are considering bills to legalize daily fantasy sports.
A North Carolina House committee recently voted 7-4 to reject a bill sponsored by state Rep. Jason Saine that would require fantasy sports operators to register with the Secretary of State’s Office and meet minimal operating standards.
Saine, who said he plays fantasy sports, stated his bill would prevent potential future industry abuses and protect the 1.6 million North Carolinians who already participate in the online contests. He said the bill would have exempted fantasy sports from being considered illegal gambling because the games do not meet the state’s definition of gambling, defined as “any game of chance.” Saine said fantasy sports contests are games of skill whose outcomes “are determined by accumulated statistical results and the performance of individuals. This definition clearly separates fantasy sports from gambling activity.”
FantasyDraft.com Chief Executive Officer Stephen Krombolz said, “The bill contains commonsense consumer protections that we’d like to embrace.” He told the committee the Cornelius, North Carolina-based company serves thousands of customers in the state.
However, North Carolina Family Policy Council lobbyist John Rustin said the bill would cause a “massive expansion of legalized gambling” in North Carolina. Currently gambling is limited to the state-run lottery and the Eastern Band of Cherokee Indians casinos. Rustin said there were too many variables in the fantasy sports contests that participants cannot control. “The elements of chance far outweigh the elements of skill,” he said.
Fantasy sports legislation is unlikely to be considered again in North Carolina until 2019.
That’s also the next opportunity for the Texas legislature to consider a fantasy sports measure, since a bill to legalize, regulate, license and tax fantasy sports operators was rejected. Sponsored by state Rep. Richard Raymond, the bill would have reversed a 2016 decision by Texas Attorney General Ken Paxton that a constitutional amendment was required to allow fantasy sports companies to operate in Texas.
Christian Conservative groups opposed the bill. Robert Kohler, a lobbyist for the Christian Life Commission of the Baptist General Convention, said, “They tried to fly a bill straight into an attorney general’s opinion.”
In Michigan, state Senator Curtis Hertel Jr. recently introduced a package of bills that would create legal definitions for fantasy sports, institute consumer protections for players and legitimize home leagues. Hertel said, “An estimated 1.6 million Michiganders participate in fantasy sports leagues every year. This legislation will ensure that games are fair and players are protected.” He added the legislation would guarantee privacy and security for players and assure the games are not affected by unfair policies.
Under the proposals, daily fantasy sports players must be at least 18 years old. DFS operators would be licensed by the state, though although players participating in home leagues would be exempt. Betting would not be allowed on college and high school sports. DFS employees would be banned from playing. And player funds would be kept separate from operating funds.
Hertel’s legislation package also requires DFS operators to make information available about problem gambling.
