Texas Attorney General Ken Paxton's opinion that wagering on DFS could be considered illegal gambling "cast a cloud" over the Fantasy Sports Trade Association convention yesterday, as "hundreds of people gathered at the Omni Dallas Hotel to discuss legal challenges across the country that threaten to derail the multibillion-dollar industry," according to Conor Shine of the DALLAS MORNING NEWS. FSTA President Paul Charchian said, "We weren’t looking to pick a fight, but fights have come to us." Shine notes attendees were "bolstered by an encouraging speech" from Mavericks Owner Mark Cuban. He said that the challenges are "necessary growing pains." Cuban: "While this is a steppingstone that we have to step over and on and across, I think it’s going to happen and it will create a foundation that makes fantasy sports ... much, much stronger." Cuban predicted that DFS "will have to deal with more regulations and taxes, but said the process will leave it on firm legal footing" (DALLAS MORNING NEWS, 1/21). USA TODAY's Brent Schrotenboer notes Cuban compared DFS to the stock market, which is legal "even though it also arguably involves more chance than skill." Cuban: "It's the ultimate in hypocrisy. Literally picking a (daily fantasy) lineup is an analogous as you can get to owning a team without owning a team. Gambling in the stock market is Gambling 101 right now because you have absolutely no clue why things are happening." He added, "Seeing politicians just do something for skins on the wall, to try to make a name for themselves, that pisses me off, as much as anything” (USA TODAY, 1/21). Paxton said, "At this point, we're not going after anybody. In New York, the attorney general is actually trying to shut down (daily) fantasy sports. We don't even have the ability to pursue criminal action." Paxton: "I was asked by a state representative: 'Is this illegal under state of Texas law?' And the answer was relatively easy based on the law" (DALLAS MORNING NEWS, 1/21).
STATE TO STATE: A SACRAMENTO BEE editorial states California AG Kamala Harris' absence from the DFS discussion is "conspicuous, especially for an elected official who claims to have the backs of consumers." The power of California is "considerable," but each week, "huge sums are being wagered and lost without oversight." The editorial: "Harris needs to get in the game" (SACRAMENTO BEE, 1/21). In Milwaukee, Rich Kirchen reported Wisconsin state Rep. Tyler Vorpagel will "circulate a draft bill for the state to enact regulations" on the industry. Vorpagel "describes his bill as providing consumer protections." The FSTA also has "registered two lobbyists to represent it" at the Wisconsin state capitol (BIZJOURNALS.com, 1/20).
