New Jersey Congressman calls for review of âmurkyâ DFS legal status
Rep. Frank Pallone says âinterplayâ between PASPA and UIGEA means public policy is unclear and ripe for Congressional review
New Jersey Representative Frank Pallone has called on Congress to investigate the âmurkyâ legal landscape surrounding daily fantasy sports operators such as FanDuel and DraftKings, as momentum continues to build behind industry regulation. [private]
In a letter to the chairman of the Committee on Energy and Commerce, Pallone requested a hearing to examine the relationship between professional sports and fantasy sports, and to review the legal status of fantasy sports and sports betting.
Pallone said the âinterplayâ between the Professional Amateur Sports Protection Act, which bans sports betting in the US, and the fantasy sports carve-out in the Unlawful Internet Gambling Enforcement Act meant public policy was âunclearâ and âripe for Congressional reviewâ.
The Representative also noted that while major sports leagues such as the NBA and the MLB have been fiercely opposed to sports betting, the majority have struck partnerships with and made investments in daily fantasy sports operators.
âEven without direct investment in the fantasy sports operators, sports leagues profit from fantasy usersâ more active engagement with the sport. Fantasy sports players watch more games than the average fan, increasing ratings and advertising dollars for the sports leagues,â Pallone wrote.
The letter said the leaguesâ âdeep involvementâ with DFS left many questioning whether fantasy sports was distinguishable from sports betting, especially with NBA Commissioner Adam Silver saying previously that sports betting should be âbrought out of the undergroundâ.
Daily fantasy sports has come under fierce legal scrutiny in recent months, with the Nevada regulator launching an investigation into its legal status. Other states have looked to license and regulate the sector, with bills being tabled in Texas and California.