Hawaii Attorney General Doug Chin yesterday issued a formal opinion that daily fantasy sports contests "constitute illegal gambling under state law," according to Craig Gima of the HONOLULU STAR-ADVERTISER. Chin in a release said, "Gambling generally occurs under Hawaii law when a person stakes or risks something of value upon a game of chance or upon any future contingent event not under the person’s control. The technology may have changed, but the vice has not." Hawaii is the "latest state to declare fantasy sports illegal," as New York, Illinois and most recently Texas have "issued similar opinions." Chin's opinion, which was written "in response to an inquiry" from state Sen. Rosalyn Baker, "doesn’t mean that fantasy sports betting will immediately stop in Hawaii" (HONOLULU STAR-ADVERTISER, 1/28).
LICENSE & REGISTRATION: In L.A., Patrick McGreevy reports the California State Assembly yesterday "approved a bill that would license" DFS websites to operate in the state The bill, which was "sent to the Senate for consideration," would allow DFS companies to operate in California "if they get a state license after undergoing background checks." Companies also "would have to pay an annual regulatory fee." The vote took place after owners of the Lakers, Clippers, NHL Kings, Galaxy and 49ers "urged lawmakers to support the measure" (L.A. TIMES, 1/28). In California, Ryan Kartje writes even as the threat of California AG Kamala Harris’ involvement "looms over the industry, California’s swift legislative approach has thus far served as a beacon of hope for daily fantasy advocates." But "few insiders expect the bill to move as easily through the State Senate" as it did the State Assembly. Many have "indicated that the bill is now firmly 'on the radar' of California’s many competing interests in the gaming industry." But the "speed and ease at which the state’s DFS bill passed through the state assembly has left quite a few stunned in the wake of" yesterday's vote (ORANGE COUNTY REGISTER, 1/28).
IT'S ALL POLITICS: In Sacramento, Dan Morain writes under the header, "Fantasy Sports Takes Aim, Shoots Foot." The DFS industry "appears to be running scared." The FSTA is "spending tens of thousands of dollars airing radio ads attacking the one California legislator who has had the temerity to state the obvious, that the rapidly expanding billion-dollar business is a gambling operation." Morain: "The question is, why bother?" Whether Levine is "right or not, he is doing his job by raising a reasonable question." Though the FSTA-backed ads "seemingly target him, the fantasy sports companies in reality are sending a 'warning shot to the attorney general,' telling her to go easy on them, or risk getting whacked as she runs for Barbara Boxer’s Senate seat" (SACRAMENTO BEE, 1/28).
SCHOOL SPIRIT: In Indianapolis, Mark Alesia reports a bill authorizing DFS in Indiana yesterday "passed its first test in the Senate" by a vote of 8-0, but "with a notable change -- the exclusion of college sports." Scott Ward, an attorney who testified on behalf of the Fantasy Sports Trade Association, said that some other states are also "considering the exclusion of college sports." An NCAA rep "spoke at the hearing in support of the bill," which would "create a regulatory structure with oversight" by the Indiana Horse Racing Commission (IHRC). DFS companies would "have to agree to an annual audit and assure age verification of players." The bill also would "allow Indiana's 'racinos' and off-track betting operations to create their own fantasy sports games or contract with an existing company." State revenue would "come from licensing fees, which the Legislative Services Agency estimates would be $175,000 to $335,000 annually" (INDIANAPOLIS STAR, 1/28). Also in Indianapolis, Jay Siskin noted paid fantasy sports games under the bill would be "would be managed through a website controlled and operated by a licensed game operator." Operators "would be required to pay an initial fee of $5,000 as well as an annual fee of $5,000 to be licensed in Indiana." The bill "could create a Paid Fantasy Sports Division" within the IHRC. The division would "collect fees, conduct any investigations needed to regulate the games and impose fines for violations." The proposed bill also would "require participants to be at least 18 years old" (IBJ.com, 1/27).
AMUSEMENT, NOT GAMBLING: In West Palm Beach, Charles Elmore reports Florida’s newly-minted Office of Amusements would oversee DFS "with the official blessing that they 'do not constitute gambling,' under a revised bill that cleared a Senate committee" yesterday. State Sen. Joe Negron, who is set to be the next Senate president, argued that the state should "let an estimated 3 million Floridians play on with 'common sense' regulation." He said, "I can’t imagine a situation where the legislature would want to make criminals out of millions of Floridians" (PALM BEACH POST, 1/28). In Tampa, Jeremy Wallace noted a pair of bills before the Florida legislature would would require DFS companies that "offer cash prizes to more than 750 participants to pay $500,000 each to register with the state of Florida and comply with regulations to bar children from playing and prevent employees of fantasy sports games from participating in the games their companies offer." The key to the bill is a provision the FSTA "has fought for that would definitively declare fantasy sports games are not forms of gambling and are not subject to state gaming regulations" (TAMPABAY.com, 1/27).
