How Will the Government Change the Game for Daily Fantasy Sports?
The Battle Between Fantasy Sports and States
The fantasy sports industry is under siege. Almost every day another lawmaker or agency announces a hearing on its legal foundations or an investigation into its business practices. On Tuesday, U.S. Congressman Frank Pallone Jr. and Senator Robert Menendez, both New Jersey Democrats, argued for new safeguards. A day later, the Wall Street Journal reported that the FBI and Justice Department had opened an investigation into whether daily fantasy sports sites violate federal law. By the end of Thursday, Nevada had told daily fantasy sports companies they had to cease operations and seek gaming licenses.
This most recent round of scrutiny follows allegations of cheating at DraftKings, one of two leading sites, amping up the calls for regulation that have been mounting since DraftKings and FanDuel began a multimillion-dollar ad blitz in August. “Maybe we need to start treating online fantasy sports gaming like traditional sports betting, which has safeguards in place to protect the player,” said Menendez at a press conference outside of MetLife Stadium on Tuesday.