A new bill in the state of California affecting daily fantasy sports (DFS) is making progress in legal channels. AB 1437, the Internet Fantasy Sports Games Consumer Protection Act, has progressed through State Legislature and could allow DFS websites such as DraftKings and FanFuel to operate legally within state borders. The change that the bill brings, however, is that there will be heavier regulation on these businesses.
New regulations, if the bill receives approval by the state legislature, will require that DFS operators apply for a license from state gambling authorities, and also pay an annual fee.
The Government Organization Committee has already approved the bill, passing almost unanimously with a 17-1 vote.
The need to regulate DFS in California came after politicians across the country began questioning the true nature of daily fantasy sports, with the main issue being whether it constitutes a game of skill or a game of luck. Some states have passed rulings determining that it is a game of luck and is therefore subject to all the regulations and licensing requirements of other gambling pastimes.
DSF has been banned in New York, and it can also not be played in the state of Nevada which only allows online poker.
The person yielding the greatest influence in the outcome of AB 1437 is California Attorney General Kamala Harris who has kept a low profile with her opinion until now. A negative opinion expressed by Harris, however, could affect the bill’s progress. AGs in Nevada and New York expressed their opinions on DFS which led to their ban in these states.
