The Assembly Committee on Governmental Organization on Wednesday moved a bill that would create a regulatory framework for daily fantasy sports in California.
AB 1437, the Internet Fantasy Sports Game Protection Act, from Assemblymember Adam Gray, D-Merced, would impose regulatory fees and licensing requirements on daily fantasy sports operators, implement security standards to prevent participation by underage players and to deter identity theft, and ensure a level playing field for the competitions.
Gray told the Assembly Committee on Governmental Organization on Wednesday that daily fantasy sports operators are projected to take in $17 billion in entry fees each year by 2020, and California will make up 10 percent to 15 percent of the national marketplace.
DraftKings, FanDuel and Yahoo are among the most well know daily fantasy sports operators.
“This is a complicated legal issue in front of us. What we have though, members, is millions of our constituents here in California participating in this activity – right now today, unprotected, nothing in place to guard against some of the dangers that we know exist., ” Gray said.
Gray said he anticipates additional amendments to AB 1437 as issues surrounding daily fantasy sports continue to evolve.
Committee member noted Wednesday that there are still fundamental questions yet to be resolved: whether federal and state courts will deem daily fantasy sports to be legal or illegal, to what degree fantasy sports are a game of skill or chance, and how other state will choose to regulate.
The most well known action under way in the U.S. is perhaps New York Attorney General Eric Schneiderman’s court injunction claiming daily sports sites are illegal gambling operations.
The Committee on Governmental Organization passed AB 1437 by a 18 to 1 vote. The bill was referred to the Appropriations Committee.
