Some state attorneys general have even stated they believe the industry constitutes illegal gambling.
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FanDuel and rival DraftKings hold the lion’s share of the multibillion-dollar daily fantasy sports market.
Freeman and Prater said the industry is rapidly evolving with new technology, but it would be important to develop a regulatory structure to protect consumers who could look to offshore websites to bet if they couldn’t do it in the United States. “We thank Governor McAuliffe for his leadership and advocacy and are hopeful that other states across the country will follow Virginia’s lead”, said Griffin Finan, director of public affairs for DraftKings, in a statement. “We will continue to work actively to replicate this success with dozens of legislatures and are excited to continue these efforts”.
The nationwide debate over daily fantasy sports has hit home in the last few days.
The Governor’s Gaming Policy Committee is on course to recommend some form of regulation for daily fantasy sports wagering, but don’t count on the leading companies in the industry to line up for licensing.
Supporters argue that building hypothetical rosters from real sports players and accumulating points based on their performance is a game of skill, not chance, and not subject to laws that govern games such as poker.
State regulators are willing to allow DFS operators to provide their services in the state if they are willing to agree that DFS games are similar to casino games and apply for a traditional gambling license.
Cory Fox, an attorney for FanDuel, called the law “a thoughtful, deliberative approach to establishing a law that safeguards fantasy sports while installing consumer protections”.
The measure mandates that players be at least 18-years-old, limits must be set on how much can be bet, businesses must submit to annual outside audits.
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Player funds must be segregated from operational funds.
