California Tribe Questions Legality of Daily Fantasy Sports

CaliforniaThis week, two powerful Californian tribes expressed their concern regarding the legality of daily fantasy sports, putting a spoke in the wheel of efforts to legalize the industry in the Golden State. Both the San Manuel Band of Mission Indians and the Morongo Band of Mission Indians worded separate letters to state Assemblyman Adam Gray who is currently trying to push through a bill that will regulate DFS in the state. The tribes said that they were concerned about the speed in which the bill is being pushed through and believe that more thought should be put into any changes in the law.

The Morongo Band of Mission Indians said in their letter to Gray that they were not sure whether daily fantasy games constituted illegal gambling. The said that they feared that the Assemblyman’s bill would essentially reward the DFS industry without any repercussions for violating the law.

“As you know,” wrote the Morongo Band’s chairman, Robert Martin to Gray, “California’s gaming tribes have made significant contributions to the state and local economies by offering games that are legal under state and federal law. As such, our members are very concerned that a retroactive approval of a form of gaming that is otherwise illegal, simply because it is popular, is a very dangerous precedent.”

Gray’s AB1437 calls for the addition to Division 8 of the state’s Business and Professions Code and an amendment to Section 337a of California’s Penal Code relating to gambling. It calls for an enactment of the Internet Fantasy Sports Games Consumer Protection Act which would require a person or entity to apply for, and receive, a license from the California Gambling Control Commission to offer internet fantasy sports game play in the state. The bill requires that the department issue a license if the person or entity satisfies specific requirements. The operator would need to register with a “licensed operator” before participating in internet fantasy sports games on an authorized internet web site.

From the letter sent to Gray by the tribes, it can be assumed that they will oppose AB 1437. This opposition would seriously hamper the meteoric speed in which AB1437 has been making through the legal pipelines. Last month the bill flew through the Assembly, with only two negative votes against it. It is now waiting for a Senate vote.

A spokesperson for the Fantasy Sports Trade Association, Steve Maviglio said that the industry appreciated the perspective of the tribes and would work with Gray to address their concerns.

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