SBC News Voice of the Sports Betting Industry
The Committee Chair of the Assembly for racing and wagering has listened to legal arguments for and against the US daily fantasy sports industry, as legislators consider developing laws to clarify legality and consumer protections.
Prior to the hearing the Assembly had stated it did not intend to “litigate the legality of fantasy sports”, concerned parties would therefore be interested in outlining potential regulations, licensing and industry standards should DFS be officially legalised.
The legal forum has been opened as New York Supreme Court Justice Manuel Mendez decides whether to ban DFS services within NY state, following the ordering of a ‘cease & desist’ injunction by Attorney General Eric T Schneiderman
Attending the forum representatives of FanDuel and DraftKings reiterated that DFS competitions were a game of skill for sports enthusiasts, and that the claims made against the industry had no scientific backing.
Trade body the ‘Fantasy Sports Trade Association’ (FSTA) backed FanDuel and DraftKings arguments citing that the operators simply acted as a ‘pool facilitator’ between customers.
FSTA representatives urged legislators to seek advice and the involvement of DFS operators in any creation of industry legislation in order to ensure the development of effective practices and standards.
The Assembly acknowledged concerns against the DFS industry, which stated that competitive outcomes were decided by sporting events outside the user’s control.
The forum further noted the rapid growth of the DFS industry which had seen interest and investment from outside parties in media, sports and enterprise investment. The Committee Chair would detail that creating an effective framework would be timely process with many differing points of view which needed to be satisfied.
